The naira maintains its gain in the official market as the currency supply continues to decline


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Friday 19 November 2021: The exchange rate between the naira and the US dollar closed at 414.4 N / $ 1, at the Investor and Exporter (I&E) desk, where the forex is officially traded.

The naira gained further against the US dollar on Friday 19 November 2021 to close at 414.4 N / $ 1, which represents an appreciation of 0.1% from the 414.8 N / $ 1 recorded on Thursday 18 November 2021. The rate had also gained during the previous session. session versus $ N415.1 / 1 recorded Wednesday.

On the other hand, the naira has remained stable in the parallel market, as it closed at 546 N / $ 1, the same as recorded in the previous trading session. This is according to information obtained from BDC operators interviewed by Nairametrics.

Nigeria’s foreign exchange reserve registered a marginal decline of 0.03% on Thursday, November 18, to close at $ 41.41 billion from $ 41.42 billion the day before.

Trading at the official NAFEX window

The on-window exchange rate for Investors and Exporters gained 0.07% to close at 414.8 N / $ 1 on Thursday, November 18, 2021 against 415.1 N / $ 1 recorded in the previous trading session.

  • The indicative opening rate closed at N413.55 / $ 1 on Friday, indicating a depreciation of 36 kobo from the N413.19 / $ 1 recorded in the previous trading session.
  • An exchange rate of N 445.75 per dollar was the highest rate recorded in intraday trading before settling at N 414.4 / $ 1, while it was selling as low as N 405 / 1 USD during intraday trading.
  • Forex revenue at the official window fell another 22.8% to $ 69.63 million on Friday.
  • According to data tracked by FMDQ’s Nairametrics, forex turnover at the I&E front desk increased from $ 90.18 million on Thursday, November 18, 2021 to $ 69.63 million on Friday, November 19, 2021.

Cryptocurrency watch

The crypto market continued its bearish trading cycle as the crypto market plunged around 1.22% of its market cap on Sunday to close at $ 2.6 trillion, largely due to performance bearish of flagship crypto assets, Bitcoin and Ethereum.

The largest crypto asset by market cap, bitcoin fell 1% on Sunday to close at $ 59,171.56, while Ethereum was down 2.19% to close at $ 4,318.71. The decline has now been carried over to the early hours of trading on Monday, as bitcoin is currently trading around $ 57,354, while Ethereum at $ 4,179.

Meanwhile, the President of El Salvador, President Nayib Bukele, revealed on Saturday that the country plans to build an entire city on the basis of the trillion-dollar cryptocurrency asset, naming it ” Bitcoin City “.

According to President Nayib Bukele, the new city will be located along the Gulf of Fonseca, near a volcano. He also mentioned that the government was planning to locate a power station near the volcano to provide power to both the city and Bitcoin mining.

Crude Oil Price

The global crude oil market also traded lower on Sunday as Brent crude fell 2.89% to close at $ 78.89 a barrel following a series of declines in the market, which saw the price of the crude product fall below the $ 80 per barrel mark.

West Tax Intermediate (WTI) also fell 3.15% to close at $ 75.94 per barrel, while natural gas gained 3.33% to close at $ 5.065 per barrel. The OPEC basket traded in the reds with a decline of 2.13% to $ 79.37 per barrel.

According to a Reuters report, the OPEC + group’s compliance rate with oil production cuts rose to 116% in October, from 115% in September, the alliance, in particular OPEC members in the pact, no. ‘having failed to pump their collective quota.

Nigerian Bonny Light crude fell 2.61% to close at $ 77.99 a barrel, while Brass River and Qua Iboe both gained 2.93% to close at $ 82.9 a barrel.

External reserve

Nigeria’s foreign exchange reserve edged down 0.03% to close at $ 41.41 billion on Thursday, November 18, 2021, from $ 41.42 billion the day before. The decline can be attributed to continued intervention by the umbrella bank to ensure exchange rate stability.

A move that saw the parallel market rate drop from N575 / $ 1 to around N546 / $ 1.

Meanwhile, the country’s foreign exchange reserves had gained $ 5.04 billion in October, thanks to the $ 4 billion raised by the federal government through the issuance of Eurobonds on the international market of the debt.

The gains recorded the previous month are higher than the gain of $ 2.76 billion recorded in September 2021. Meanwhile, Nigeria’s reserve has shrunk by $ 414.87 million so far in November. Since the start of the year, reserves have gained $ 6.03 billion.

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About Meredith Campagna

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