By Jeph Ajobaju, Chief Copy Editor
Nigeria’s naira closed against the United States dollar at N408.6/$1 at the Investors and Exporters (I&E) window on Tuesday, gaining N1.4 at the NAFEX window or 0.34 per cent compared to N410/$1 on Monday.
But the exchange rate remained stable in the parallel market, closing at N480/$1 on Tuesday, the same as on Monday.
Trading at the official NAFEX window
Nairametrics reports that the naira appreciated against the dollar at the I&E window on Tuesday, closing at N408.6/$1 or 0.34 per cent compared to N410/$1 on Monday.
· The opening indicative rate closed at N409.5/$1 on Tuesday, a N1.46 drop compared to N409.5/$1 on Monday.
· An exchange rate of N429.75 to a dollar was the highest during intra-day trading before it closed at N408.6/$1. It also sold for as low as N388.75/$1 during intra-day trading.
· Forex turnover at the I&E window increased 134.6 per cent on Tuesday.
· Data tracked by Nairametrics from FMDQ showed that forex turnover increased from $52.58 million on Monday to $423.37 million on Tuesday.
· Tuesday’s figure of $123.37 million is the highest turnover since January 14.
Cryptocurrency watch
Nairametrics also reports that the crypto market lost significantly on Tuesday as selling pressure pushed the value of crypto assets lower amid sudden panic among retail and institutional traders.
· Bitcoin lost about 13.14 per cent to stand at $47,055 on Tuesday at 8:11 pm, a decline of over $7,000 in a single day.
· This extends a sharp withdrawal from a record high it hit on February 21 although Bitcoin remains up about 75 per cent year to date.
· Ethereum dipped 15.72 per cent and XRP 16.93per cent on Tuesday.
· Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, defended at the Senate on Tuesday the ban on cryptocurrency transactions in the country.
· He briefed lawmakers on the opportunities and threats associated with cryptocurrency and how they affect Nigeria’s economy and security.
Oil prices rise ahead of OPEC+ meeting in March
Brent crude oil price rose 0.61per cent on Tuesday to close at $65.64 compared to $64.63 on Monday.
· The price increase came after Goldman Sachs forecast that oil prices would climb around $70 per barrel in the second quarter of 2021 (Q2 2021) and $75 in Q3 2021 – $10 above its previous projections.
· The bank also said consumption will return to pre-virus levels by late July while output from major producers will remain “highly inelastic” to the rising prices.
· Saudi Arabia and Russia are heading to the OPEC+ meeting next week with varying opinions on whether to add more supply to the market in April, which could shape the performance of the oil market.
· On Tuesday, Brent closed at $65.47 (+0.35 per cent), WTI at $61.74 (+0.06 per cent), Bonny Light $62.83 (+1.19 per cent), OPEC Basket ($62), and Natural Gas $2.882 (-2.4 per cent).
Nigeria loses $1.1 billion external reserves
Nigeria’s external reserves dipped 0.41 per cent on Monday to stand at $35.28 billion.
· This is a decline of $145.9 million in foreign reserves, the highest single-day loss since April 2020, Nairametrics adds.
· Nigeria’s external reserves have now hit their lowest level in almost two months, losing over $1.1 billion in less than a month.
· The downturn persists despite bullish trends in the global crude oil market. However, Nigeria needs to boost external reserves to $40 billion to help meet some of the pent-up demand piled up by the crash in global oil prices in 2020.