The exchange rate remains stable in the official market despite the decline in turnover in the foreign exchange market

Tuesday, January 25, 2022: The exchange rate between the naira and the US dollar at the official Investors and Exporters (I&E) window closed at N416.33/$1.

The naira gained slightly against the US dollar on Tuesday with an appreciation of 0.01% to close at 416.33 naira/$1 from 416.38 naira/$1 recorded in the previous trading session. The exchange rate had maintained an average of 416.71 naira to the dollar since the start of the new year. Meanwhile, forex turnover in the official market fell 30.2% to $95.52 million from $136.9 million traded on Monday.

The exchange rate appreciated 0.94% in the P2P market on Wednesday morning, trading at a low of N580/$1 from the N585.5/$1 recorded at the close of trading on Tuesday.

Similarly, the naira appreciated on the parallel market with a gain of 0.53% to close at 568 naira per dollar against 571 naira/$1 recorded the day before. This is according to information obtained from BDC traders interviewed by Nairametrics.

Nigeria’s foreign exchange reserve declined by $74.67 million on Monday to close at $40.24 billion as of January 24, 2022, down 0.19% from the $40.31 billion recorded on January 21. January 2022.

Negotiate at the official NAFEX counter

The exchange rate at the Investors and Exporters window closed at N416.33/$1 on Tuesday, January 25, 2022, representing an appreciation of 0.01% from the N416.38/$1 recorded during the previous trading session.

  • The indicative opening rate closed at N415.21/$1 on Tuesday, which is up 10 kobo from the N415.31/$1 recorded in the previous trading session.
  • An exchange rate of N444/$1 was the highest rate recorded in intraday trading before settling at N416.33/$1, when it sold off as low as 410 N/$1 in intraday trades.
  • Forex turnover at the official counter decreased by 30.2% to $95.52 million on Tuesday, January 25, 2022.
  • According to data tracked by FMDQ’s Nairametrics, forex turnover at the I&E window increased from $136.9 million recorded on Monday, January 24, 2022 to $95.52 million on Tuesday, January 25, 2022.

Cryptocurrency monitoring

The cryptocurrency market posted a rare upside performance on Tuesday, as the market capitalization gained 0.32% to close at $1.65 trillion. A flagship crypto asset, bitcoin gained 0.05% as of 10:15 p.m. (Nigerian time) to trade at $36,742.1. However, at press time, bitcoin gained another 0.6% to trade at $37,227.31.

In contrast, Ethereum fell 0.6% to trade at $2,428.66 and Solana gained 1.61% to close at $93.38. Meanwhile, Tera fell 4.34% on Tuesday while Uniswap trended down 1.31% to trade at $10.56.

crude oil prices

The crude oil market rallied back as crude prices rallied on Tuesday, trending toward $90 a barrel. Brent Crude gained 2.04% in price on Tuesday to close at $88.2 per barrel, WTI closed at $85.6 per barrel, indicating a 2.5% appreciation.

Natural gas gained 0.5% on Tuesday to close at $4.047 a barrel while the OPEC basket gained 0.59% to close at $87.98 a barrel.

In contrast, Bonny Light fell 2.71% to close at $86.62 a barrel while fellow Nigerian crudes, Brass RIver and Qua Iboe both closed at $87.63 a barrel, representing a decline. 1.74%. It should be noted that the prices of the Nigerian raw product are delayed by one day.

Meanwhile, the stability of the crude oil market after the previous day’s slowdown was attributed to falling inventories reported by the American Petroleum Institute (API). The API estimated the crude oil inventory draw this week at 872,000 barrels after analysts predicted a draw of 400,000 barrels.

External reserve

Nigeria’s external reserve fell 0.19% on Monday, January 24, 2022, to close at $40.24 billion, representing a decline of $74.66 million from the $40.31 billion recorded on the day of previous scholarship.

The continued decline in the level of the country’s reserves can be attributed to the Central Bank’s intervention in the official market to ensure exchange rate stability. It should be noted that the country’s foreign exchange reserve gained $5.99 billion in the month of October, thanks to the $4 billion raised by the federal government through the issuance of Eurobonds in the international market. debt.

However, in the month of November, Nigeria’s external reserve lost $611.01 million compared to a gain of $5.99 million recorded the previous month and a gain of $2.76 million in September 2021. In December 2021, the reserve decreased by $66.17 million, while in January 2022, a total of $280.4 million was lost at the reserve level.

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