Foreign Exchange Rate Gains in Official Market as Forex Turnover Records Rise

The exchange rate between the naira and the US dollar at the official Investors and Exporters (I&E) window closed at N416/$1.

The naira appreciated slightly against the US dollar on Friday to close at N416/$1, a gain of 0.08% from the N416.33/$1 recorded in the previous trading session. On the other hand, forex turnover in the official market increased by 57.5% to $142.42 million from $90.42 million traded on Thursday.

On the other hand, the exchange rate fell 0.09% in the P2P market on Monday morning, trading at a low of N579.5/$1 from the N579.5/$1 recorded at the close of trading. trading activities on Friday.

Meanwhile, the naira held steady at N570/$1 in the parallel market, maintaining the same rate for the past three trading sessions. This is according to information obtained from BDC traders interviewed by Nairametrics.

Nigeria’s foreign exchange reserve recorded a marginal decline of $30.5 million to close at $40.3 billion as of January 20, 2022, down 0.08% from the recorded $40.54 billion to January 19, 2022.

Negotiate at the official NAFEX counter

The exchange rate at the Investors and Exporters window closed at N416/$1 on Friday, January 21, 2022, representing an appreciation of 0.08% from the N416.33/$1 recorded during the trading session. previous negotiation.

  • The indicative opening rate closed at N414.76/$1 on Friday, representing a depreciation of 66 kobo from the N415.42/$1 recorded in the previous trading session.
  • An exchange rate of N444/$1 was the highest rate recorded in intraday trading before settling at N416/$1, when it sold off as low as N406/ $1 in intraday transactions.
  • Forex turnover at the official counter increased by 57.5% to reach $142.42 million on Friday, January 21, 2022.
  • According to data tracked by FMDQ’s Nairametrics, forex turnover at the I&E window increased from $90.42 million recorded on Thursday 20th January 2022 to $142.42 million on Friday 21st January 2022.

Cryptocurrency monitoring

The cryptocurrency market continues to suffer huge selloffs following the US Fed’s decision to raise interest rates at least three times, precipitating the liquidation of most leveraged assets in the market. Marlet.

The crypto market fell 4.2% in the early hours of Monday to settle at $1.59 trillion in market value, representing a decline of $69.5 billion. The move in the market was triggered by the crypto’s flagship asset falling 2.99% to settle at $35,193.

Ethereum also fell 5.52% to trade at $2,402.93 as of 7 a.m. Monday.

However, a recent article by Nairametrics revealed that the Bitcoin network recorded a new all-time high mining difficulty of 26.643 trillion with an average hash rate of 190.71 exahash per second (EH/s), signaling strong community support. despite an ongoing bear market.

crude oil price

The crude oil market started the week on Monday on a positive note, after the bullish run recorded the previous week. At press time, Brent Crude had gained 0.68% to trade at $88.49 a barrel from the closing price of $87.89 in the previous trading session.

The price of crude oil at $88.49 a barrel represents the highest price in more than seven years. Similarly, West Texas Intermediate (WTI) also gained 0.65% to trade at $85.69 a barrel, while natural gas fell 2.15% to trade at $3.913 a barrel. .

Meanwhile, the growth recorded in the market followed the drone attack on the United Arab Emirates, in the most important oil producing and exporting region, adding to the continued tightness of the crude oil market, thus driving up the prices.

In contrast, Bonny Light fell 1.26% to trade at $89.03 a barrel while fellow Nigerian crudes, Brass River and Qua Iboe are both trading at $87.84 a barrel representing a decrease of 2.68%. It should be noted that the price of the Nigerian raw product is delayed by 3 days.

External reserve

Nigeria’s external reserve fell 0.08% on Thursday, January 20, 2022, to close at $40.3 billion, down $30.5 million from the $40.4 billion recorded on the day of previous scholarship.

The continued decline in the level of the country’s reserves can be attributed to the Central Bank’s intervention in the official market to ensure exchange rate stability. It should be noted that the country’s foreign exchange reserve gained $5.99 billion in the month of October, thanks to the $4 billion raised by the federal government through the issuance of Eurobonds in the international market. debt.

However, in the month of November, Nigeria’s external reserve lost $611.01 million compared to a gain of $5.99 million recorded the previous month and a gain of $2.76 million in September 2021. In December 2021, the reserve decreased by $66.17 million, while in January 2022, a total of $174.2 million was lost at the reserve level.