Wednesday, March 24, 2021, the exchange rate between the naira and the US dollar closed at N408.75 / $ 1 in the window for investors and exporters.
Naira rose again against the U.S. dollar on Wednesday to close at N408.75 per dollar, up 0.26% from N409.8 / $ 1 on Tuesday.
However, in the parallel market, the naira remained relatively stable as it closed at N486 / $ 1, which is the same as recorded in previous trading.
Forex trading rose slightly to $ 34.76 million, while Nigeria’s foreign reserve recorded its third consecutive growth, reaching $ 182.3 million in three days.
READ: Why external reserves are falling despite rising oil prices
Trading on the official NAFEX window
Naira on Wednesday at the window for investors and exporters strengthened against the US dollar and closed at N408.75 / $ 1. This represents a gain of 1.05.000 N compared to N409.8 / $ 1 recorded on Tuesday, March 23, 2021.
- The initial indicative rate on Wednesday closed at N408.98 for the dollar. This represents a gain of 80 kobo compared to N409.78 / $ 1 recorded on Tuesday.
- Also, the exchange rate of N414 to the dollar was the highest exchange rate recorded during intraday trading before closing at N408.75 / $ 1. This represents the highest rate recorded in almost two weeks.
- It was also sold at a price of N394 / $ 1 during intraday trading. The difference from N1 compared to N393 recorded the previous day
- Forex trading at the window for investors and exporters (I&E) on Wednesday, March 24, 2021, increased slightly by 5%.
- A cursory glance at the data monitored by Nairametrics from FMDQ showed that foreign exchange turnover increased from $ 33.11 million recorded on Tuesday, March 23, 2021, to $ 34.76 million on Wednesday.
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Bitcoin, the world’s most valued and popular cryptocurrency, fell more than 4.06% to trade at $ 52,153.23 on Wednesday.
- The highly coveted digital currency lost about $ 2,208.34, down 4.06% in a single day.
- Ethereum also fell 5.75% on Wednesday and traded at $ 1,574.2 as of Wednesday at 11:52 p.m.
- This appeared on the back of Jerome Powell’s comments on the risk associated with investing in bitcoin and other digital assets.
- Jerome Powell, chairman of the US Federal Reserve, said that the instability of crypto coins undermines their ability to store value, which is the basic function of money. He went further and stated that bitcoin is not really useful as a stock of value.
- Meanwhile, JMP Securities predicts that “$ 1.5 trillion of additional capital” could be poured into bitcoin, which is higher than the current market limit of the cryptocurrency.
- The company sees several wealth management companies following Morgan Stanley’s example of offering bitcoin to their clients. “About $ 30 trillion in assets in the U.S. retail wealth management industry currently lacks direct access to bitcoins
READ: The US government is up for auction on Bitcoin within a few days
Brent Crude makes a real leap
Brent crude traded at $ 3.62 on Wednesday and closed at $ 64.41 a barrel, up 5.95% in one day after suffering a massive drop the previous day.
- Oil prices have fallen as investor sentiment toward a resurgence of the Covid pandemic and major European countries has led to new blockades and others have extended their lock-in.
- It’s worth noting that Bonny Light earned 2.67% to close at $ 62.58 a barrel, while WTI fell 0.88%.
- WTI closed at $ 60.64 (-0.88%), Brent Crude ($ 64.41), Bonny Light ($ 62.58), OPEC Basket ($ 62.27) and Natural Gas ($ 2,479).
- Meanwhile, analysts believe OPEC + is likely to decide to maintain stable oil production for another month.
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External reserves earn $ 182.3 million in three days
Nigeria’s foreign reserves increased by 0.08% on Tuesday, March 23, 2021, to 34.6 billion dollars.
- This represents the third consecutive growth in three days, which earned a total of 182.27 million dollars, from 34.42 billion recorded on March 18, 2021 to 34.6 billion dollars on March 23, 2021.
- To date, the Nigerian reserve has lost $ 957.26 million before recording an increase in the last three days, which could be attributed to the recent rise in the global crude oil market.
- Nigeria will hope to continue on this path, as an increase in foreign exchange reserves indicates more foreign exchange to meet national demand.