Naira Crashes, Selling N557 / $ 1 On The Black Market As Demand Pressures Worsen – Nairametrics

Tuesday, September 14, 2021:The exchange rate between the naira and the US dollar closed at N412.08 / $ 1 in the official window for investors and exporters.

Naira appreciated against the US dollar on Tuesday, closing at N412.08 / $ 1 versus N412.75 / $ 1 at the close of trading on Monday September 13, 2021, a gain of 0.16%.

The parallel market exchange rate depreciated to another all-time low on Tuesday, closing at N557 / $ 1 compared to N550 / $ 1 in the previous trading session. This corresponds to a depreciation of 1.3% and widens the gap between the black market rate and the official rate.

The local currency plunged from N7 on the black market and hit a new low after CBN channeled forex demand out of the window as buyers scramble to buy the scarce dollars.

Currency speculators take advantage of the enormous difference in exchange rates between the official market and the black market.

Demand pressures for foreign exchange continued despite an 8% improvement in dollar supply at the official window.

Trade in the official NAFEX window

The exchange rate appreciated against the US dollar on Tuesday, September 14, 2021, closing at N 412.08 for one dollar, a gain of 67 Kobo compared to US $ 412.75 on the previous trading day.

The opening benchmark closed at N412.18 / $ 1 on Tuesday, September 14, 2021, a gain of 28 Kobo compared to N412.46 / $ 1 recorded on Monday, September 13, 2021.

An exchange rate of N414.90 per dollar was the highest rate recorded in intraday trading before hitting N412.08 / $ 1, while it was sold for only N400 / $ 1 during intra-day trading.

Meanwhile, forex sales in the Investors and Exporters (I&E) window rose 8.2% on Tuesday, September 14, 2021.

According to data tracked by FMDQ’s Nairametrics, foreign exchange sales rose from $ 161.82 million on Monday to $ 175.10 million on Tuesday, September 14, 2021.

Cryptocurrency watch

The world’s largest and most popular cryptocurrency, Bitcoin, rose 4.09% to $ 47,044.19 early Tuesday evening.

The US Securities and Exchange Commission has been urged by Fidelity Investments to approve its exchange-traded Bitcoin fund in a private session and enumerate the merits of an idea the regulator was slow to embrace.

Global crypto market cap rose as high as $ 2.07 trillion from last day. However, the total volume of the crypto market increased by up to 23% to $ 135.74 billion.

The CoinDCX research team said that while Bitcoin fell from $ 50,000 in late August, it continues to be tracked and will soon take its valuation back down as institutional and retail investors continue to add it to their portfolios.

Ethereum, the second largest cryptocurrency by market capitalization, rose 3.34% to trade at $ 3,400.80 on Tuesday; in the same vein, XRP rose 1.79% to $ 1.09.

The chairman of the Nigerian Commission on Economic and Financial Crime, Abdulrasheed Bawa, has addressed the risk to the global economy associated with Bitcoin and other cryptocurrencies. According to him, many criminals are now playing a prominent role in the cryptocurrency markets, adding that virtual currencies have become their preferred medium of exchange.

Crude oil price

Crude oil prices rose, with Brent crude rising 0.10% and trading at $ 73.58 a barrel after previously falling on better demand prospects.

Oil prices rose to their highest level in 6 weeks early Tuesday as the IEA expects a strong recovery in global oil demand from October and another storm threatened to disrupt the US Gulf oil industry.

The WTI rose 0.77% to $ 71.02 before falling later, and the price of Brent Crude topped $ 74 a barrel, up 0.78% on the day to $ 74.11.

Early Tuesday, oil was supported by the outlook for the next few months in the International Energy Agency’s oil market report, which earlier in the day showed that the IEA expected global oil demand to rise 1.6 million bpd in October and rise through the end of the year continues after 3 consecutive months with declines due to the delta variant.

The WTI rose 0.62% to $ 70.90 a barrel, while Nigerian headline crude Bonny Light rose 0.98% to $ 72. The OPEC basket also rose 0.22% to $ 71.98, while natural gas rose 1.01% to $ 5,284 after rising earlier.

External reserve

Nigeria’s foreign reserves rose $ 250 million to $ 35.109 billion on Monday, September 13, 2021, compared to $ 34.859 billion the previous day. The latest increase represents a 0.72% increase in the country’s currency reserves.

The reserve has now gained $ 1.092 billion in September, reducing the year-to-date loss to about $ 261 million, compared to $ 35.37 billion as of December 31, 2020.

Recent reports suggest that Nigeria’s currency reserves could grow to as high as $ 40 billion by the end of September 2021.

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