Friday June 18, 2021: The exchange rate between the naira and the US dollar closed at 411 N / $ 1 at the official counter for investors and exporters.
The naira appreciated against the US dollar on Friday to close at N411 per dollar, against N411.5 / $ 1 recorded on Thursday, June 17, 2021.
Furthermore, the exchange rate depreciated in the parallel market to close at 498 N / $ 1 against 493 N3 / $ 1 recorded on Thursday. This represents an N5 drop after the significant gain from the previous trading day.
READ: Exchange rate drops at NAFEX window as Nigeria’s external reserve drops by $ 1 billion
The naira fell in the parallel market after the significant rise from the previous trading day due to improved currency supply, with speculators losing big as ABCON warned against hoarding and speculative behavior dealers, which they claim would lead to heavy collateral losses.
The CBN, following its meeting with the ABCON, decided to increase the foreign exchange allocation to the BDCs and maintain funding for approximately 5,000 association members.
Trading at the official NAFEX window
The naira appreciated against the US dollar at the Investors and Exporters window on Friday to close at N411 / $ 1, which represents a gain of 50 kobo from the N411.5 / $ 1 recorded the day before.
- The indicative opening rate closed at N 411.58 per dollar on Friday June 18, 2021, which represents a depreciation of 4 kobo from the N 411.54 / $ 1 recorded on Thursday June 17, 2021.
- In addition, an exchange rate of N 413.67 / $ 1 was the highest rate recorded in intraday trading, before settling at N411 / $ 1. It also sold for as low as N395.45 / $ 1 during intraday trading.
- Forex turnover at the Investors and Exporters (I&E) counter increased significantly by 82.3% on Friday, June 18, 2021.
- Data tracked by the FMDQ’s Nairametrics showed that forex revenue increased from $ 138.2 million on Thursday, June 17, 2021 to $ 252 million on Thursday, June 17, 2021.
READ: Naira crashes to save N502 / $ 1 on black market as forex speculation rises
The world’s largest and most popular cryptocurrency, Bitcoin, continued its downtrend, declining an additional 0.20% to close at $ 35,659.54 on Sunday night as the total value of the crypto market increased. declined to $ 1.4 trillion in the past 24 hours, losing nearly 8%.
- A massive sell-off in the crypto market continued over the weekend, with the world’s two largest cryptos, Bitcoin and Ethereum, both declining as the Chinese crackdown accelerates.
- China has extended the crackdown on the Bitcoin mining industry to its largest Bitcoin-producing provinces, including the southwestern province of Sichuan.
- Earlier today, Bitcoin fell below the $ 35,000 mark on the news, slumping 7.9% to $ 33,596. Ethereum, the second largest crypto by market cap, fell 9.2% to trade at $ 2,065. The same token, Dogecoin, fell 12.5% to $ 0.26 during the session.
- Ethereum rose 3.16% on Sunday night to close at $ 2,254.82.
Crude oil prices rose on Friday after the previous trading day’s decline, with Brent crude closing at $ 73.51 a barrel, OPEC sources saying U.S. shale producers are unlikely to rise significantly. significant crude production this year, despite rising oil prices.
- Brent crude oil fell 0.59% on Sunday night, June 20, 2021 to close at $ 73.51 a barrel.
- U.S. production has hovered around 11 million barrels per day in recent months, down 2 million barrels per day from record highs in early 2020, before the pandemic caused demand to explode and prices plummet. oil price.
- Restricting the US shale makes OPEC’s job of managing the oil supply in the market much easier if the projection of limited US growth this year occurs.
- At the same time, rising demand for oil in the United States and stagnating domestic production in recent months have pushed up the price of US benchmark WTI crude, which has significantly reduced the discount to Brent crude. these last weeks.
- WTI crude rose 0.84% to close at $ 71.64, Bonny Light gained 0.37% to close at $ 73.04 per barrel, OPEC basket was down 1.19 % to close at $ 72.29, while natural gas dipped 1.17% to close at $ 3.215.
READ: Nigeria lost $ 2.78 billion to oil theft, pipeline sabotage, 21% drop
Nigeria’s external reserve continued to decline on Thursday, June 17, 2021 as it fell $ 30 million to close at $ 33.794 billion.
- This represents a drop of 0.09% from the $ 33.824 billion recorded on Wednesday, June 16, 2021.
- A total of $ 1.58 billion has been lost in reserves since the start of the year, while the monthly loss stands at $ 405.33 million.
- Nigeria’s foreign exchange reserve continues to decline despite the positive recovery in the global crude oil market, with Brent crude currently trading at $ 73.5 per barrel.
- It should be noted that India’s oil imports have started to recover after months of reduced activity due to the effect of the covid-19 pandemic on the country’s economy.