Naira falls further in official market as foreign exchange reserves gain $ 786 million in one day – Nairametrics

Tuesday, October 5, 2021: The exchange rate between the naira and the US dollar closed at 414.3 N / 1, at the investors and exporters window, where the forex is officially traded.

The naira depreciated further against the US dollar on Tuesday, to close at 414.3 N / $ 1, down 0.18% from the 413.55 N / $ recorded on Monday, October 4, 2021.

Meanwhile, the parallel market exchange rate gained 0.35% to close at N575 / $ 1 on Tuesday versus N577 / $ 1 recorded the week before. This is according to information obtained by Nairametrics from BDC operators in Lagos.

The crude oil market extended its gains as the price of Brent crude closed at $ 82.56 per barrel on Tuesday as part of OPEC + ‘s decision to maintain the production quota.

On a related note, Nigeria’s foreign exchange reserve hit a record high of $ 785.84 million on Monday, October 4, 2021 to close at $ 37.57 billion, hitting its highest level in 20 months. This is according to data from the Central Bank of Nigeria.

Trading at the official NAFEX window

The exchange rate fell against the US dollar on Tuesday, October 5, 2021 to end the day at N 414.3 per dollar, a depreciation of 0.18% compared to N / $ 413.55 recorded on Monday, 4 October 2021.

The indicative opening rate closed at N 414.03 / $ 1 on Tuesday, which represents a depreciation of 32 kobo from the N 413.71 / $ 1 recorded the previous trading day.

An exchange rate of 415.2 N to the dollar was the highest rate recorded in intraday trading before settling at 414.3 N / $ 1, when it was selling as low as 404 N / $ 1 during intraday trading, the same as the previous trading day.

Meanwhile, forex turnover at the official box office rose 12.2% on Tuesday, October 5, 2021.

According to data tracked by the FMDQ’s Nairametrics, forex revenue increased from $ 108.83 million on Monday to $ 122.15 million on Tuesday, October 5, 2021.

Cryptocurrency watch

The world’s most popular and capitalized crypto asset broke the $ 50,000 threshold on Tuesday as it is currently trading at $ 51,568.63 at 6:02 a.m. on Wednesday, indicating an increase in positive investor sentiment towards the highly demanded crypto asset.

The new price indicates a near recovery of all losses suffered in September, where Bitcoin fell from a high of $ 52,850 to as low as $ 39,787, which is a drop of 24.72%.

Meanwhile, at the time of writing, the crypto market has edged down 0.58% to $ 2.22 trillion, which is a loss of $ 13.31 billion. for commercial investors, while Ethereum’s performance currently stands at -0.65% at $ 3,493.33.

Meanwhile, the Nigerian traded around $ 32.16 million in Bitcoin in September, indicating a decline from the $ 44 million recorded the month before. The total trading volume between January and September 2021 was $ 315.76 million.

Crude Oil Price

Crude oil extended its gains on Tuesday, consolidating recent uptrends, with Brent Crude gaining 1.6% to close at $ 82.56 per barrel from $ 81.31 per barrel the previous day.

Likewise, West Texas Intermediate also gained 0.22% to close at $ 79.1 per barrel, while Natural Gas closed at $ 6.314 per barrel on Tuesday.

Nigerian Bonny Light crude traded higher on Tuesday as its price rose 3.94% to close at $ 40.73 a barrel on Tuesday, while other Nigerian crudes, Brass River and Qua Iboe both traded higher on Tuesday. posted gains of 3.32% each to close at $ 81.13 a barrel.

The uptrend continued, following OPEC + ‘s decision to maintain production increases of 400,000 bpd per month. At the meeting, all participating States agreed that sticking to the originally designed course would be in the collective interest of the group.

External reserve

Nigeria’s foreign exchange reserves rose further by $ 785.8 million on Monday, October 4, 2021 to close at $ 37.6 billion from $ 36.78 billion the day before. The latest increase represents a 2.1% increase in the country’s foreign exchange reserves and the largest daily increase since February 2020.

The reserve gained a record $ 2.76 billion in September 2021, while the recent gain places the year-to-date gain at $ 2.19 billion.

The recent increase in the reserves position, which has continued since August 25, is in line with recent reports suggesting that Nigeria’s foreign exchange reserves position could reach $ 40 billion by the end of September 2021.

Although reserves did not reach $ 40 billion as expected in the previous month, they continue to register positive growth and could cross the expected line by the end of the current month, if they maintain this trajectory.

With the oversubscription of the euro-bond of $ 4 billion obtained by the federal government on the international debt market, the reserve is expected to gain strength in the coming weeks.

Disclaimer: Nairametrics does not set or determine exchange rates. Official NAFEX rates are obtained from the FMDQOTC website. Parallel market rates are obtained from a variety of sources, including online media. The rates you buy or sell in forex may be different from those described in this article.

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