Connect with us

Business

Naira Falls At Official Market Despite 86% Improvement In US Dollar Supply

Published

on

Naira Falls At Official Market Despite 86% Improvement In US Dollar Supply

The Nigerian currency, the Naira falls at the official market despite an 86% Improvement in the United States Dollar supply.

The exchange rate between the naira and the US dollar closed at N415.05/$1 at the official Investors and Exporters (I&E) window on Thursday.

Naira depreciated against the US dollar to close at N415.05/$1. This represents a 0.2% drop when compared to the N414.25 that was recorded in the previous trading sessions as the pressure on the country’s external reserves continued with a decline of $24 million.

READ ALSO: Apply Here For GTBank Recruitment Job Vacancies (2 Positions)

Advertisement

Also, the naira depreciated marginally against the US dollar on Thursday as it closed at N572.5/$1. This represents a 50 kobo drop when compared to the N572/$1 that was recorded in the previous trading session. This is according to information obtained from BDC operators.

The local currency fell at the official market despite an 86.4% improvement in dollar supply during Thursday’s trading session.

Trading at the official NAFEX window

The exchange rate at the Investors and Exporters window depreciated to close at N415.05/$1 on Thursday, representing an 80 Kobo drop when compared to the N414.25/$1 that was recorded at the last trading session.

Advertisement

The opening indicative rate depreciated to close at N414.13/$1 on Thursday, December 16, which represents a 26 kobo drop when compared to the N413.87/$1 that was 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 N415.05/$1, while it sold for as low as N405/$1 during intra-day trading.

Naira Falls At Official Market Despite 86% Improvement In US Dollar Supply

Naira Falls At Official Market Despite 86% Improvement In US Dollar Supply

Forex turnover at the official window rose by 86.4% to trade at $331.11 million on Thursday.

According to data from FMDQ, forex turnover at the I&E window increased from $177.60 million on Wednesday 15th December 2021, to $331.11 million on Thursday 16th December 2021.

Advertisement

Crude oil price

Oil prices dropped with the Brent crude going down by 0.44% to trade at $74.69 per barrel as the Omicron variant affects demand outlook.

Oil fell for the first time in 3 days, halting a second weekly gain, as concerns about the impact on demand of the rapidly spreading omicron strain of coronavirus and tighter monetary policy played off against positive U.S. inventory data and a weakening dollar.

This week has seen traders hit with conflicting signals on demand and supply, ranging from the central bank moves and new restrictions to limit the spread of omicron to declining inventories in the U.S. and forecasts that prices and volatility will rise in the New Year

Advertisement

That has seen a generally risk-off attitude in oil markets, leading the aggregate volume of futures contracts on Thursday to drop to its lowest since August.

The West Texas Intermediate went down by 0.47% to trade at $72.04 per barrel after rising earlier on Thursday. Natural gas went up by 0.53% to trade at $3,786 while OPEC Basket went down by 1.56% to trade at $73.12 per barrel.

On the other hand, Nigerian crude, Bonny Light went up by 3.08% to trade at $74.93 per barrel.

Advertisement

Cryptocurrency watch

The world’s largest and most popular cryptocurrency, Bitcoin, went down by 3.81% to trade at $47,062.51 in the early hours of Friday after witnessing a surge earlier on Thursday as lower trading volumes and measures to control inflation add to signals that bitcoin and other digital assets could be headed back to reckoning.

The global cryptocurrency market cap on Thursday is $2.38 Trillion, which is a 3.7% increase in the last 24 hours, as per CoinGecko.

While to total cryptocurrency trading volume in the last day is at $132 Billion, Bitcoin dominance is at 38.8%, with Ethereum dominance at 20.2%, according to CoinGecko.

Advertisement

Market analysts remained positive about the cryptocurrency market. The cryptocurrency market showed signs of bouncing back from the support levels initially during the session. However, we saw bears gaining activity and managing to hold the markets from moving higher.

Meanwhile, Ethereum, the world’s second-largest cryptocurrency by market capitalization was down by 3.72% to trade at $3,885.05

External reserves

Nigeria’s external reserve dropped by 0.06% on Wednesday, 15th December 2021, to close at $40.707 billion. This represents a decrease of $24 million compared to $40.731 billion recorded as of Tuesday, 14th December

Advertisement

The consistent decline that had been experienced in the country’s reserve level could be attributed to the continuous intervention of the apex bank in ensuring the stability of the exchange rate.

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 a $2.76 million gain in September 2021. On a year-to-date basis, the reserve gain has reduced to $5.74 billion.

Advertisement

Source: Nairametrics

Facebook Comments
Advertisement
Erik ten Hag set to pay the price for Man United disastrous season [Full details]
Sports23 hours ago

Erik ten Hag set to pay the price for Man United disastrous season [Full details]

What Mikel Arteta said to Mauricio Pochettino after Arsenal thrashed Chelsea 5-0
Sports1 day ago

What Mikel Arteta said to Mauricio Pochettino after Arsenal thrashed Chelsea 5-0

Mauricio Pochettino Fumes Over Chelsea Duo in Dressing Room 'Leak' Saga
Sports2 weeks ago

Mauricio Pochettino Fumes Over Chelsea Duo in Dressing Room ‘Leak’ Saga

Supercomputer's Latest Premier League Title Prediction Rocks Arsenal Fans
Sports2 weeks ago

Favourite to win the Premier League title emerge as supercomputer makes new prediction

'Fear' and Agitation in Chelsea Camp as Mauricio Pochettino shares Cole Palmer's injury update
Sports2 weeks ago

‘Fear’ and Agitation in Chelsea Camp as Mauricio Pochettino shares Cole Palmer’s injury update

Cristiano Ronaldo Creates Opportunity for Jose Mourinho's Next Move as Pochettino Awaits Chelsea's Decision
Sports3 weeks ago

Cristiano Ronaldo Creates Opportunity for Jose Mourinho’s Next Move as Pochettino Awaits Chelsea’s Decision

Manchester United Fumes Over Their Player's Disheartening Treatment
News4 weeks ago

Manchester United Fumes Over Their Player’s Disheartening Treatment

More Woes For Man City Ahead of Arsenal Game As Another Key Player Picks Up Injury
Sports4 weeks ago

More Woes For Man City Ahead of Arsenal Game As Another Key Player Picks Up Injury

Fraud Alert: Fidelity Bank Staff Faces Trial For Alleged Embezzlement of Customer's N2.7 Billion
Crime4 weeks ago

Fraud Alert: Fidelity Bank Staff Faces Trial For Alleged Embezzlement of Customer’s N2.7 Billion

Princess of Wales, Kate Middleton announces she has cancer [Video]
News1 month ago

Princess of Wales, Kate Middleton announces she has cancer [Video]

Arsenal's Injury Dilemma Ahead of Showdown Against Manchester City Revealed
Sports1 month ago

Arsenal’s Injury Dilemma Ahead of Showdown Against Manchester City Revealed

Former Chelsea Manager Antonio Conte Linked With A Surprise Return To Stamford Bridge Amid Mauricio Pochettino Looming Sack
Sports1 month ago

Former Chelsea Manager Linked With A Surprise Return To Stamford Bridge Amid Mauricio Pochettino Looming Sack

Top 5 Tuition-Free Universities for Nigerians Who Want To Study Abroad in 2024
Education1 month ago

Top 5 Tuition-Free Universities for Nigerians Who Want To Study Abroad in 2024

Manchester City Sweats As Their Key Player Seen Injured Ahead of Arsenal Clash
News1 month ago

Manchester City Sweats As Their Key Player Seen Injured Ahead of Arsenal Clash

News1 month ago

No Reprisal Attacks in Delta Community After Killing of Troops — Says Defence Headquarters