BREAKING: Naira Gains Massively At Official Market Despite Drop In Forex Turnover

Naira has gained massively at the official market despite a drop in Forex Turnover.

 

Newsonline reports that the exchange rate between the Naira and the US dollar closed at N414.30/$1, at the official Investors and Exporters window.

 

The Naira appreciated against the US dollar to close at N414.30/$1 on Friday 5th November 2021, representing a 0.2% gain compared to N415.10/$1 recorded at the close of trading activities on Thursday.

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On the other hand, the Naira remained flat against the US dollar at the parallel market on Friday to close at N570/$1, the same as recorded at the close of trading activities on Thursday, 4th November 2021. This is according to information obtained by Nairametrics from BDC operators in Lagos.

 

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Trading at the official NAFEX window

The exchange rate appreciated against the US dollar on Friday, 5th November 2021, to close at N414.30/$1 compared to N415.10/$ recorded in the previous trading session. This represents an 80 kobo gain in the country’s exchange rate.

 

The opening indicative rate closed at N414.13/$1 on Friday. This represents a 36 kobo gain when compared to N414.49/$1 recorded in the previous trading day.

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An exchange rate of N444 to a dollar was the highest rate recorded during intra-day trading before it settled at N414.30/$1, while it sold for as low as N409.61/$1 during intra-day trading. The highest rate recorded during the day has been the same in the past eight trading sessions.

 

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Forex turnover at the official window dropped by 23.5% on Friday, November 5th 2021.

 

According to data tracked by Nairametrics from FMDQ, forex turnover at the I&E window decreased from $129.54 million recorded on Thursday 4th November 2021 to $99.14 million on Friday 5th November 2021.

 

Cryptocurrency watch

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The world’s largest and most popular cryptocurrency, Bitcoin, was up by 5.24% to trade at $65,334.90, rising to a two-and-a-half-peak with cryptocurrencies riding higher on a wave of momentum, flows, favourable news and inflation fears.

Ether is up 57% since the start of October and bitcoin about 50% as investors have cheered last month’s launch of a U.S. futures-based bitcoin exchange-traded fund and sought exposure to an asset class sometimes regarded as an inflation hedge.

In recent weeks Australia’s biggest bank has said it will offer crypto trading to retail customers, Singaporean authorities have sounded positive on the asset class and spillover from a positive mood in stocks has also leant support.

The value of the overall crypto market surpassed $2.8 trillion as the US House of Representatives passed the $1.2 trillion Infrastructure Bill which is almost the same value as the entire market cap of Bitcoin.

Also, the world’s second largest cryptocurrency by market capitalization, Ethereum, was up by 3.66% to trade at $4,721.96

Crude oil price

The crude oil market ended the day bullish with the Brent crude going up by 2.73% on Sunday evening to trade at $82.74 per barrel as OPEC remain cautious on oil output despite increasing prices.

 

Saudi Arabia’s larger-than-expected rise in oil prices is a signal it will resist U.S. pressure to pump more crude, according to Vitol Group.

 

On Friday, a day after OPEC+ stuck to its plan to boost output only at a gradual pace, Saudi Aramco hiked December prices for customers in Asia, the U.S. and Europe.

U.S. President Joe Biden put pressure on OPEC+ to speed up the easing of supply curbs that began in early 2020 with the onset of the coronavirus pandemic.

Oil has climbed around 60% this year to move than $80 a barrel because of the global economic recovery and OPEC+’s cuts.

West Texas Intermediate was also up by 3.12% decline to trade at $81.27 per barrel, OPEC Basket dropped 0.2% to trade at $81.42 per barrel. Natural Gas was down by 3.50% to trade at $5.516.

Nigeria’s crude, Bonny Light went up by 1.30% to trade at $82.59 per barrel on Sunday.

External reserve

Nigeria’s foreign reserve dropped by $29.2 million for the fifth consecutive day to close at $41.73 billion on November 4th 2021. This represents a 0.07% decline when compared to the $41.76 billion that was recorded the previous day.

 

Meanwhile, the nation’s foreign reserve gained $5.04 billion in the month of October, on the back of the $4 billion raised by the federal government from the issuance of Eurobond in the international debt market. The gains recorded in the previous month were higher than the $2.76 billion gain recorded in the month of September 2021, while the recent decrease puts the year-to-date gain at approximately $6.35 billion.

 

So far in the month of November, Nigeria’s reserve has reduced by $93.39 million.