Naira maintains gain at official window as oil prices inch close to $70

Thursday, 29th April 2021: The exchange rate between the naira and the US dollar closed at N411/$1 at the Importers and Exporters window.

Naira appreciated on Thursday, at the Nigerian Autonomous Foreign Exchange (NAFEX) window, as the rate closed at N411 to a dollar. This represents a 25 kobo gain when compared to the N411.25/$1 that was recorded on Wednesday, 28th April 2021.

However, the naira continued to remain stable at the parallel market to close at N485/$1 on Thursday. This was the same rate that was recorded the previous day.

The naira has maintained its gain at the official window as oil prices near $70 per barrel.

Trading at the official NAFEX window

The naira appreciated against the US dollar at the Investors and Exporters window on Thursday to close at N411/$1, representing a 25 kobo gain when compared to the N411.25/$1 that was recorded on Wednesday.

• The opening indicative rate closed at N410.46 to a dollar on Thursday, 29th April 2021, representing a 27 kobo drop when compared to the N410.19/$1 that was recorded on Wednesday.
• Also, an exchange rate of N435.65 to a dollar was the highest rate recorded during intra-day trading before it settled at N411/$1. It also sold for as low as N392/$1 during intra-day trading.
• Forex turnover at the Investor and Exporters (I&E) window rose significantly by 229.2% on Thursday, 29th April 2021.
• Data tracked from FMDQ showed that forex turnover increased from $33.55 million recorded on Wednesday, 28th April 2021, to $110.46 million on Thursday, April 29, 2021.

Cryptocurrency watch

The world’s most priced and largest digital asset traded below the $54,000 mark as data looks bullish despite Bitcoin recording lower prices.

• Bitcoin dropped on Thursday to trade at $53,452 on Thursday evening as Nexon joined the list of tech companies embracing the digital currency, buying about $100 million worth of Bitcoin.
• Though the cryptocurrency has rebounded above its average price over the past 100 days, it’s still trading below its 50-day moving average.
• The price of Ethereum, the world’s second-biggest cryptocurrency in terms of market capitalization and volume, traded at $2,744 after initially hitting an all-time high on Thursday.

Crude oil price

The price of crude oil moved towards $70 per barrel on Thursday, April 29, 2021, as the demand outlook improved.

• Oil prices got a major boost this week, thanks to optimistic expectations about demand from OPEC+ and rebalancing fuel inventories in the United States.
• Brent jumped to over $68 per barrel, and West Texas Intermediate neared $65 per barrel by the middle of the week and could rise even further unless headwinds appear.
• Brent Crude rose by 1.92% to trade at $68.56, indicating an increase of $1.29, compared to the previous day’s price.
• WTI Crude dropped by 0.35% after initially going up earlier in the day to trade at $64.78, Bonny light rose by 0.65% to trade at $66.28, while Natural Gas currently sells for an average of $2,905.
• Oil prices rose early on Thursday to their highest level in six weeks as a brighter outlook on the American economy and oil demand offset bearish demand prospects from the Covid-19 crisis in India.

External reserve

Nigeria’s external reserve position dropped by 0.1% on Wednesday, 28th April 2021 to stand at $34.940 billion.

• Data obtained from the Central Bank of Nigeria (CBN), revealed that Nigeria’s external reserve dipped from $34.974 billion recorded on 27th April 2021 to $34.940 billion on Wednesday, April 28, 2021.
• This represents the eighth consecutive decline recorded during the week in Nigeria’s external reserve, having had 19 successive growths.
• The recent decline can be attributed to low liquidity and pressure on the foreign exchange market.