Thursday, December 16, 2021:The exchange rate between the naira and the US dollar closed at 415.05 N / $ 1 at the official Investor and Exporter (I&E) window.

The naira depreciated against the US dollar on Thursday to close at 415.05 N / $ 1. This is down 0.2% from the N414.25 recorded in previous trading sessions as pressure on the country’s external reserves continued with a decline of $ 24 million.

In addition, the naira depreciated slightly against the US dollar on Thursday when it closed at 572.5 N / $ 1. This is a decrease of 50 kobo from the N572 / $ 1 recorded in the previous trading session. This is according to information obtained from BDC operators interviewed by Nairametrics

The local currency fell in the official market despite an 86.4% improvement in the dollar supply during Thursday’s trading session.

Trading at the official NAFEX window

The exchange rate at the Investors and Exporters window depreciated to close at N / $ 1 415.05 on Thursday, which is Kobo 80 lower from the N / $ 1 414.25 recorded in the last trading session. of scholarship.

The indicative opening rate depreciated to close at N 414.13 / $ 1 on Thursday, December 16, which is a decrease of 26 kobo from the N 413.87 / $ 1 recorded during the trading session. former.

An exchange rate of N444 / $ 1 was the highest rate recorded during intraday trading before settling at N415.05 / $ 1, while it was selling as low as N405 / $ 1 during intraday trading.

Forex revenue at the official window rose 86.4% to trade at $ 331.11 million on Thursday.

According to data tracked by FMDQ’s Nairametrics, forex turnover at the I&E front desk increased from $ 177.60 million on Wednesday, December 15, 2021 to $ 331.11 million on Thursday, December 16, 2021.

Crude Oil Price

Oil prices fell with Brent crude down 0.44% to trade at $ 74.69 a barrel with the Omicron variant affecting the demand outlook.

Oil fell for the first time in 3 days, ending a second weekly gain as concerns about the impact on demand of the rapid spread of the omicron strain of the coronavirus and the tightening of monetary policy played out against positive US inventory data and the weakening dollar.

This week, traders were hit with mixed signals on demand and supply, ranging from central bank moves and new restrictions to limit the spread of omicron to declining stocks in the United States and the United States. forecast that prices and volatility will increase in the new year.

This saw a generally risk-averse attitude in oil markets, which led total futures volume on Thursday to drop to its lowest level since August.

West Texas Intermediate was down 0.47% to trade at $ 72.04 a barrel after rising earlier Thursday. Natural gas rose 0.53% to trade at $ 3,786 while the OPEC basket fell 1.56% to trade at $ 73.12 per barrel.

In contrast, Nigerian Bonny Light crude rose 3.08% to trade at $ 74.93 per barrel.

Cryptocurrency watch

The world’s largest and most popular cryptocurrency, Bitcoin, fell 3.81% to trade at $ 47,062.51 on Friday morning after witnessing an increase earlier Thursday as the decline trading volumes and inflation-control measures add to signals that bitcoin and other digital assets could be brought back to its accounts.

The global cryptocurrency market cap on Thursday is $ 2.38 trillion, an increase of 3.7% over the past 24 hours, according to CoinGecko.

While the total cryptocurrency trading volume over the past day is $ 132 billion, Bitcoin’s dominance is 38.8%, with Ethereum’s dominance at 20.2%, according to CoinGecko.

Market analysts remained positive about the cryptocurrency market. The cryptocurrency market has shown signs of a rebound from the support levels initially during the session. However, we have seen bears gain activity and successfully keep the markets from moving forward.

Meanwhile, Ethereum, the world’s second largest cryptocurrency by market cap, fell 3.72% to trade at $ 3,885.05.

External reserves

Nigeria’s external reserve fell 0.06% on Wednesday, December 15, 2021, to close at $ 40.707 billion. This represents a decrease of $ 24 million from the $ 40.731 billion recorded as of Tuesday, December 14.

The steady decline in the country’s reserve level could be attributed to the continued intervention of the umbrella bank to ensure exchange rate stability.

It should be noted that the country’s foreign exchange reserves had gained $ 5.99 billion as of October, thanks to the $ 4 billion raised by the federal government when issuing Eurobonds on the international market. debt.

In November, Nigeria’s external reserve lost $ 633.47 million in value, compared to a gain of $ 5.99 million recorded the previous month and a gain of $ 2.76 million in September 2021. Since then at the start of the year, the reserve gain was reduced to $ 5.74. billion.