Exchange rate gains at NAFEX window as Goldman Sachs predicts oil price at $80

On Friday, 30th April 2021: The exchange rate between naira and the US dollar closed at N410/$1 at the Importers and Exporters window.

Naira appreciated further on Friday at the NAFEX window to close at N410 to a dollar. This represents a N1 gain when compared to N411/$1 recorded on Thursday, 29th April 2021.

On the other hand, naira maintained stability at the parallel market to close at N485/$1, while forex turnover dipped by 48.6% from $110.46 million recorded on Thursday to $56.81 million on Friday, 30th April 2021.

Meanwhile, bitcoin gained 2.54% in the early hours of Monday as it traded for $58,060 as at 4:42 am on Monday, while the total crypto market capitalisation has gained to stand at $2.21 trillion.

Trading at the official NAFEX window

The naira appreciated against the US dollar at the Investors and Exporters window on Friday to close at N410/$1, representing a N1 gain when compared to the N411/$1 that was recorded on Thursday.

• The opening indicative rate closed at N410.13 to a dollar on Friday, 30th April 2021, representing a 33 kobo drop when compared to the N410.46/$1 that was recorded on Thursday.
• Also, an exchange rate of N429.13 to a dollar was the highest rate recorded during intra-day trading before it settled at N410/$1. It also sold for as low as N395/$1 during intra-day trading.
• Forex turnover at the Investor and Exporters (I&E) window declined significantly by 48.6% on Friday, 30th April 2021.
• Data tracked from FMDQ showed that forex turnover reduced from $110.46 million recorded on Thursday, 29th April 2021, to $56.81 million on Friday, April 30, 2021.

Cryptocurrency watch

The world most popular digital currency on Sunday, 2nd May 2021 dipped by 2.16% to trade at $56,601 having lost $1,250 during intra-day trading.

• This came after the Vice-Chairman of Berkshire Hathaway, Charlie Munger expressed disdain towards the most priced cryptocurrency.
• According to a report from CNBC, Munger stated that: “I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilisation.”
• Meanwhile, Visa during its earnings call for the period ended March 31st, 2021 expressed its commitment to the crypto space and revealed that the company considers two market segments in the crypto space.
• Bitcoin is one of them, which he described as “primarily” an asset held by people. “We kind of think of them as the digital gold,” he continued. “Then there are digital currencies, including central bank digital currencies [CBDCs] and stablecoins that are directly backed by existing fiat currencies.”
• However, bitcoin gain 2.54% in the early hours of Monday as it traded at $58,060 at 4:42 am on Monday, while the total crypto market capitalisation has gained to stand at $2.21 trillion.

Crude oil price

The price of Brent Crude oil gained marginally by 0.09% on Sunday, 2nd May 2021 to close at $66.82.

• This came on the heels of a boost recorded last week as Brent Crude traded for over $68 per barrel before settling below $67 in the weekend.
• Oil prices have resumed their bearish run in the early hours of Monday. At the time of writing this article, Brent was trading at $66.66, while WTI was trading at $63.53.
• Oil prices got a major boost last week, thanks to optimistic expectations about demand from OPEC+ and rebalancing fuel inventories in the United States.
• Meanwhile, Goldman Sachs expects global oil demand to realise the biggest jump ever, in the next six months, maintaining its bullish forecast for oil prices.
• Goldman Sachs continues to see oil rising to $80 per barrel this summer and says that: “The magnitude of the coming change in the volume of demand — a change which supply cannot match — must not be understated.”

External reserve

Nigeria’s external reserve dipped by 0.09% on Thursday, 29th April 2021 to close at $34.91 billion from $34.94 billion recorded the previous day.

• The recent decline indicates that a sum of $345.83 million has been lost in external reserve in the past nine days.
• According to data tracked from the website of the Central Bank of Nigeria, this represents the ninth consecutive decrease recorded in Nigeria’s external reserve position.
• The persistent decline can however be attributed to low liquidity and pressure in the foreign exchange market.