Naira has gained massively at the official market a few days to Christmas as forex liquidity surges by 139%.
NewsOnline reports that the exchange rate between the naira and the US dollar closed at N414.8/$1 at the official Investors and Exporters (I&E) window.
Naira started the week with a 0.07% gain against the US dollar on Monday to close at N414.8/$1 compared to N415.07/$1 recorded in the previous trading sessions. Forex turnover at the official market jumped by 138.5% to $360.18 million from $151.03 million recorded in the previous trading session.
On the other hand, the naira closed flat against the US dollar on Monday at N573/$1, the same as recorded in the previous week. This is according to information obtained from BDC operators interviewed by NewsOnline Nigeria in Ogba, Lagos, Nigeria.
Nigeria’s foreign reserve reduced by 0.05% on Friday, 17th December to close at $40.67 billion compared to $40.69 billion recorded as of the previous day. The continuous decline in the nation’s external reserve is attributed to the intervention by the apex bank in the official forex market.
Trading at the official NAFEX window
The exchange rate at the Investors and Exporters window appreciated by 0.07% to close at N414.8/$1 on Monday, compared to N415.07/$1 recorded on Friday, 17th December 2021.
- The opening indicative rate closed at N413.84/$1 on Monday, which represents a 1 kobo depreciation compared to N413.83/$1 recorded in the previous trading session.
- An exchange rate of N444/$1 was the highest rate recorded during intra-day trading before it settled at N414.8/$1, while it sold for as low as N405/$1 during intra-day trading.
- Forex turnover at the official window increased by 138.5% to $360.18 million on Monday.
- According to data tracked by Nairametrics from FMDQ, forex turnover at the I&E window increased from $151.03 million recorded on Friday 17th December 2021 to $360.18 million on Monday 20th December 2021.
The cryptocurrency market overturned a bearish start as the market capitalisation gained marginally by 0.53% to close at $2.197 trillion. In the same manner bitcoin gained 0.96% to close at $47,152 while Ethereum recorded a 0.19% gain to close at $3,929.71.
Solana dipped 2.67% to trade at $175.135 while Luna with a 1.58% gained closed at $79.4507982. The crypto market is suffering from bullish sentiments as huge selloffs going into the festive period has kept the prices on the red.
Meanwhile, the Central Bank of Russia has reaffirmed its opposition against cryptocurrency investment citing the high volatility of the digital assets.
Crude oil price
Crude oil prices resumed the week on a bearish note, as Brent crude closed on the reds with 2.04% decline to close at $72.02 per barrel, while West Texas Intermediate closed at $68.66 per barrel, representing a 3.1% decline.
At the same time, the OPEC Basket dipped 0.58% to close $74.23 while Bonny Light recorded a 5.06% decline to close at $69.54 per barrel.
Nigerian crude oil, Brass RIver and Qua Iboe also started the week bearish with 4.69% loss to close at $71.58 per barrel.
Nigeria’s external reserve dipped by 0.05% on Friday, 17th December 2021 to close at $40.67 billion, which represents a decline of $21.4 million compared to $40.69 billion recorded as of the previous day.
The decline in the country’s reserve level can be attributed to the continuous intervention of the apex bank in ensuring the stability of the exchange rate. The exchange rate at the official window as remained stable in the past four trading sessions.
It is worth noting that the nation’s foreign reserve had gained $5.99 billion in the month of October, as a result of the $4 billion raised by the federal government from the issuance of Eurobond in the international debt market.
In the month of November, Nigeria’s external reserve lost $633.47 million in value as against a gain of $5.99 million recorded in the previous month and $2.76 million gain in September 2021. So far in the month of December, the reserve level has lost $517.48 million, while on a year-to-date basis, the reserve gain has reduced to $5.29 billion.