Naira hits record lows on the black market as dollar supply drops significantly by 62% – Nairametrics
Monday, August 30, 2021:The exchange rate between the naira and the US dollar closed at N411.63 / $ 1 on the Investors and Exporters Window, where Forex is officially traded.
Naira appreciated against the US dollar, closing at N411.63 / $ 1 on Monday, a gain of 37 Kobo versus N412 / $ 1 at the close of trading on Friday, August 27, 2021.
However, the naira depreciated further on the parallel market when it fell on Monday the 30th.
The naira fell to a new record low on the black market against the dollar on Monday after the CBN microfinance banks banned foreign exchange transactions as the dollar supply fell by a sharp 62%.
According to Reuters, the CBN’s suspension of forex allotments to BDC operators has drained black market liquidity and could further weaken the naira.
Trade in the official NAFEX window
The naira appreciated against the US dollar on Monday, August 30, 2021, closing at N411.63 to one dollar, a 0.27% depreciation from N412 / $ 1 on the previous trading day.
The indicative opening price closed at N411.93 / $ 1 on Monday, August 30, versus N411.80 / $ 1 recorded on Friday, a devaluation of 13 Kobos.
An exchange rate of N415.20 to one dollar was the highest rate recorded during intraday trading before settling at N411.63 / $ 1, while it was sold for only N400 / $ 1 during intra-day trading .
Meanwhile, the Investor and Exporter Window (I&E) foreign exchange turnover fell 62.2% on Monday, August 30, 2021.
According to data from FMDQ, foreign exchange sales declined from $ 216.52 million on Friday to $ 81.81 million on Monday, August 30, 2021.
The world’s most popular and largest cryptocurrency, Bitcoin, fell 2.03% to $ 47,040.42 on Monday night as cryptocurrency investors push alternatives to Bitcoin and Ether to new heights amid a surge in downloads for crypto trading apps.
Cryptocurrency prices are still in the red on August 31st. The global cryptocurrency market capitalization is $ 1.98 trillion, down 5.19% from last day, while the total volume of the crypto market in the last 24 hours is $ 103.08 billion, a value of 14.10%. Increase.
Meanwhile, anti-bitcoin protests broke out in El Salvador as Bitcoin law is set to go into effect in less than a week, with citizens not entirely convinced.
The second largest cryptocurrency by market cap, Ethereum, rose 2.41% to $ 3,237.43, while XRP slumped 0.85% to $ 1.11.
Crude oil price
Brent crude fell 0.04% to $ 73.38 a barrel Monday night after rising earlier in the day when Hurricane Ida stalled 95% of US Gulf Coast oil production.
The Kuwaiti Oil Minister said crude oil prices could continue to rise if OPEC + stops adding barrels to global supply, which is possible after the cartel’s next meeting.
OPEC + had agreed to increase oil production by 400,000 bpd each month from August until the group’s combined production reached previously agreed levels by the end of next year.
But now that demand concerns are coming to the fore again, OPEC + is signaling that it is always ready to change course.
The West Texas Intermediate (WTI) lost 0.04% to close at $ 69.18 a barrel on Monday evening, August 30, 2021, after rising earlier in the day.
Natural gas fell 0.26% to $ 4,294, Bonny Light Crude closed the day up 1.27% to close at $ 70.02 while the OPEC basket closed 1.03% to $ 71.48.
Nigeria’s foreign reserves rose by $ 91 million as of Friday the 27. The latest increase means the country’s foreign reserves have increased by 0.27%.
Similarly, reserves have increased by $ 259 million since the beginning of the month, compared to $ 33.403 billion at the beginning of the month.
However, the year-to-date change shows a loss of $ 1.891 billion, compared to $ 35.37 billion as of December 31, 2021.
While recent reports have suggested that Nigeria’s foreign currency reserves may have risen to $ 40 billion by the end of September 2021.