The exchange rate drops in the official foreign exchange market as supply increases dramatically by 115%

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Monday 22 November 2021: The exchange rate between the naira and the US dollar closed at 415.07 N / $ 1, at the Investor and Exporter (I&E) desk, where the forex is officially traded.

Naira started the week falling 0.16% to close at N 415.07 / $ 1 on Monday from the N 414.4 / $ 1 recorded on Friday November 19, 2021. On the other hand, the figure of Forex business at the official window jumped 114.7% to $ 149.53 million.

Meanwhile, the naira has remained stable in the parallel market, as it closed at 546 N / $ 1, the same as recorded in the previous trading session. This is according to information obtained from BDC operators interviewed by Nairametrics.

Nigeria’s foreign exchange reserve fell again by 0.05% on Friday, November 19 to close at $ 41.39 billion against $ 41.41 billion recorded the day before.

Trading at the official NAFEX window

The Investors and Exporters window exchange rate fell 0.16% to close at N 415.07 / $ 1 on Monday, November 22, 2021 from N 414.4 / $ 1 recorded at the previous week’s close.

The indicative opening rate closed at N413.53 / $ 1 on Friday, which represents an appreciation of 5 kobo from the N413.55 / $ 1 recorded in the previous trading session.

An exchange rate of N 453.1 per dollar was the highest rate recorded in intraday trading before settling at N 415.07 / $ 1, while it was selling as low as N 404 / $ 1 during intraday trading. The highest daily has now registered two consecutive days of increases.

Forex revenue at the official window rose significantly 114.7% to $ 149.53 million on Monday.

According to data tracked by FMDQ’s Nairametrics, forex turnover at the I&E front desk increased from $ 69.63 million recorded on Friday, November 19, 2021 to $ 149.53 million on Monday, November 22, 2021.

Cryptocurrency watch

The crypto market started trading on Tuesday on a positive note, with market cap gaining 0.8% to $ 2.51 trillion in the early hours of the day. Bitcoin also gained 0.61% to trade at $ 56,636.2 while Ethereum with a gain of 1.63% was trading at 4,161 at the time of writing.

Nigeria fell on the list of countries with the greatest interest in Bitcoin, overtaken by El Salvador. This is according to a recent article published by Nairametrics. Nigeria fell to second with a score of 61, while the Central American country takes matters into its own hands with a perfect score of 100.

Meanwhile, the President of El Salvador, President Nayib Bukele, revealed on Saturday that the country plans to build an entire city on the basis of the trillion dollar cryptocurrency asset, naming it ” Bitcoin City “.

According to President Nayib Bukele, the new city will be located along the Gulf of Fonseca, near a volcano. He also mentioned that the government was planning to locate a power station near the volcano to provide power to both the city and Bitcoin mining.

Crude Oil Price

Crude oil prices started today’s trading session on a bearish note, with Brent Crude shedding 0.97% on Tuesday at 7 a.m. to trade at $ 78.93 a barrel, after falling. dominated by bearish sentiments in recent weeks, which have seen the prices of some of the major crude commodities fall below the $ 80 mark.

Likewise, West Texas Intermediate fell 1.2% to trade at $ 75.82 a barrel, while natural gas is currently trading at $ 4.761, down 0.58% from the day before.

Meanwhile, OPEC Basket gained around 1.2% to trade at $ 80.32 a barrel, while Bonny Light gained 1.49% to trade at $ 79.15. On the flip side, Nigerian crude, Brass River and Qua Iboe both lost significantly 5.38% to trade at $ 78.44 per barrel.

According to a note from Goldman Sachs, the recent bearish trade in the global crude oil market is not justified by fundamentals, but due to exaggerated concerns about a strategic oil reserve (SPR) release and a blow to the calls for the resurgence of COVID in Europe and the United States.

External reserve

Nigeria’s foreign exchange reserves fell a further 0.05% to close at $ 41.39 billion on Friday, November 19, 2021, from $ 41.41 billion the day before. The drop is attributed to continued intervention by the umbrella bank to ensure exchange rate stability, a move that saw the parallel market rate drop from N575 / $ 1 to around N5 / $ 1.

Meanwhile, the country’s foreign exchange reserves had gained $ 5.04 billion in October, thanks to the $ 4 billion raised by the federal government when issuing Eurobonds on the international market of the debt.

The gains recorded the previous month are higher than the gain of $ 2.76 billion recorded in September 2021. Meanwhile, the Nigerian reserve has now registered a decline of $ 433.57 million so far in the month of November, while it was in year-to-date. basis, reserves gained $ 6.01 billion.

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