The exchange rate remains stable in the official market as the supply of currencies increases by more than 100% – Nairametrics


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Thursday, December 9, 2021:The exchange rate between the naira and the US dollar closed at 415.07 N / $ 1 at the official window of investors and exporters (I&E).

The naira held steady against the US dollar on Thursday to close at N 415.07 / $ 1. This is the same rate as that recorded during previous trading sessions, as the decline in the country’s external reserves continues with a decline of $ 20 million.

However, the naira depreciated against the US dollar on Thursday as it closed at 570 N / $ 1. This represents a decrease of N2 from the N568 / $ 1 recorded in the previous trading session. This is according to information obtained from BDC operators interviewed by Nairametrics.

The local currency remained stable in the official market as forex revenue increased significantly by 100.6% during Thursday’s trading session.

Trading at the official NAFEX window

The exchange rate at the Investors and Exporters window was held steady to close at N 415.07 / $ 1 on Wednesday, the same rate as recorded during the last trading session.

The indicative opening rate also held steady to close at N413.71 / $ 1 on Thursday, which was the same rate recorded on the previous trading session.

An exchange rate of N444 / $ 1 was the highest rate recorded during intraday trading before settling at N415.07 / $ 1, while it sold as low as N404 / $ 1 during trading intra-day.

Forex revenue at the official window rose 100.62% to trade at $ 453.38 million on Thursday.

According to data tracked by FMDQ’s Nairametrics, forex turnover at the I&E front desk increased from $ 225.99 million on Wednesday, December 8, 2021 to $ 453.38 million on Thursday, December 9, 2021.

Cryptocurrency watch

The world’s largest and most popular cryptocurrency, Bitcoin, fell 2.92% to trade at $ 48,316.64 as losses accelerated after failing to maintain the positive momentum seen after the lightning crash last weekend.

Most cryptocurrencies traded lower on Thursday after Fitch Ratings called China’s Evergrande group an official defaulter. Stocks were also lower as traders seemed concerned about the risk of a global meltdown resulting from China’s credit problems.

Cryptocurrencies have been showing wild moves in recent sessions, especially over the past weekend, when many were drawn into a larger wave of risk that also hit US stocks. This has come as soaring inflation is forcing central banks to tighten monetary policy, threatening to reduce the tailwind of liquidity that has lifted a wide array of assets.

Meanwhile, Ethereum, the world’s second largest cryptocurrency by market cap, fell 5.66% to trade at $ 4,119.87

Crude Oil Price

The rally in oil prices ended Thursday, with Brent crude falling 0.31% to trade at $ 74.19 a barrel ahead of higher-risk events expected to make headlines on Friday.

A scorching start to the week fizzled out as the market reassessed the potential demand impacted by the omicron variant.

Brent crude had surpassed $ 75 earlier Thursday, bolstering OPEC + confidence that they had done the right thing by planning to increase production by another 400,000 bpd in January.

Fears persist in the market over additional Covid-19 measures that could dampen demand for oil. But the appetite for crude oil on Thursday was also dampened by the high-risk releases expected on Friday, with traders eyeing in particular the US inflation figures.

However, crude is still expected to post the biggest weekly gain since August after surging more than 9% in the first three days of the week. This is a remarkable turnaround after oil fell into a bear market after falling for several weeks.

West Texas Intermediate fell 0.25% to trade at $ 70.76 per barrel. Natural gas rose 0.16% to trade at $ 3,820 while the OPEC basket rose 5.15% to trade at $ 75.09 per barrel.

In contrast, Nigerian Bonny Light crude fell 0.47% to trade at $ 74.83 per barrel.

External reserves

Nigeria’s external reserve fell 0.05% on Wednesday, December 8, 2021, to close at $ 40.931 billion. This represents a decrease of $ 20 million from the $ 40.951 billion recorded the day before.

The steady decline in the country’s reserve level could be attributed to the continued intervention of the umbrella bank to ensure exchange rate stability.

It should be noted that the country’s foreign exchange reserves had gained $ 5.99 billion as of October, thanks to the $ 4 billion raised by the federal government when issuing Eurobonds on the international market. debt.

In November, Nigeria’s external reserve lost $ 633.47 million in value, compared to a gain of $ 5.99 million recorded the previous month and a gain of $ 2.76 million in September 2021. Since then at the start of the year, the reserve gain was reduced to $ 5.74. billion.

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