Exchange rate gains at NAFEX window as dollar supply improves significantly
According to Nairametrics, Naira to Dollar rate today indicates that Naira gained against the US Dollar on Thursday to close at N409/$1, representing a 0.52% gain when compared to N411.13/$1 recorded on Wednesday, 10th March 2021.
Also, Naira gained against the US Dollar in the parallel market, gaining N2 to close at N482 to a dollar compared to N484/$1 recorded on the previous day.
This came after the president of the Association of Bureau De Change Operators in Nigeria (ABCON), Aminu Gwadebe stated in a virtual meeting that the BDC’s will not allow forex speculators and street hawkers to take over BDC business in Nigeria through their illegal practices.
On the other hand, commercial banks in Nigeria have informed their customers that they can no longer make instant online transfers out of their domiciliary accounts without proper documentation.
Naira gained against the US Dollar at the Investors and Exporters window on Thursday to close at N409 to a dollar. This represents a N2.13 kobo gain when compared to N411.13/$1 recorded on the previous trading day.
- The opening indicative rate closed at N409.66 to a dollar on Thursday. This represents a 69 kobo gain when compared to N410.35/$1 recorded on Wednesday.
- Also, an exchange rate of N415 to a dollar was the highest rate during intra-day trading before it closed at N409/$1. It also sold for as low as N390/$1 during intra-day trading.
- Forex turnover at the Investor and Exporters (I&E) window jumped by 420.3%% on Thursday, 11th March 2021.
- A look at the data tracked by Nairametrics from FMDQ, forex turnover increased from $36.92 million recorded on Wednesday, March 10, 2021, to $192.11 million on Thursday, March 11, 2021, being the highest dollar supply recorded in two weeks.
Oil prices rally high
Brent Crude oil on Thursday 11th March 2021 gained momentum as it rose by 2.55%% to close at $69.63, indicating a recovery from its slump recorded on Monday and Tuesday.
- The price of Brent Crude had topped $70 per barrel in the early hours of Monday this week before sliding down on account of the news of an attack by rebel Houthi rebel on the Saudi oil infrastructure on Sunday.
- The recent increase in oil price can be attributed to OPEC+’s decision to maintain the current production cuts for another month.
- According to the Foreign Minister of Saudi Arabia, Prince Faisal bin Farhan, while speaking after a meeting with his counterpart from Russia, Sergey Lavrov, the Organisation of Petroleum Exporting Countries is looking for a “fair” price for its crude.
- Afterward, Lavrov noted that the OPEC+ alliance was strong and there was nothing that could at this point undermine the good working relationship between Russia and Saudi Arabia.
- This is a strong indication that both parties are in synergy towards ensuring that Crude oil price continues its current bullish run.
- WTI Crude closed at $65.9 (-0.18%), OPEC Basket $65.6, Bonny Light $68.19 (+3.27%), and Natural Gas $2.672 (+0.15%).
External reserve continues its decline
Nigeria’s external reserve declined by 0.13% on Wednesday, 10th March 2021 to stand at $34.67 being a record low in 10 months.
- The country’s external reserve declined from $34.71 billion recorded as of Tuesday, 9th March 2021 to stand at $34.67 billion as of 10th March 2021.
- Nigeria’s current external reserve position indicates a total loss of $433.68 million in the month of March 2021.