Naira continues gain at official window despite 2.4% drop in dollar

Tuesday, 28th September 2021:  The exchange rate between the naira and the US dollar closed at N414.50/$1, at the official Investors and Exporters window. Naira appreciated against the US dollar on Tuesday, to close at N414.50/$1, representing a 0.08% gain when compared to N414.83/$1 recorded on Monday 27th September 2021.

Meanwhile, the exchange rate at the parallel market closed at N573/$1 on Tuesday. This is according to information obtained by Nairametrics from BDC operators in Lagos.

The naira gain at the official market continued despite a 2.4% drop in dollar supply. The local currency is still hitting record lows against the US dollar at the black market despite the news of Nigeria’s Eurobond sales which is meant to boost the nation’s external reserves. Nigeria, last week, sold $4 billion Eurobond after investors oversubscribed to the tune of $12.2 billion. The rise in the external reserve on the back of the Eurobond issue is likely to increase the CBN’s capacity to support the naira.

Trading at the official NAFEX window

The exchange rate appreciated against the US dollar on Tuesday, 28th September 2021 to close the day at N414.50 to a dollar, representing a 33 kobo gain when compared to N413.83/$1 recorded on Monday, 27th September 2021.

The opening indicative rate closed at N413.69/$1 on Tuesday, representing a 39 kobo drop when compared to N413.30/$1 recorded on Monday, 27th September 2021.

An exchange rate of N415 to a dollar was the highest rate recorded during intra-day trading before it settled at N414.50/$1, while it sold for as low as N405/$1 during intra-day trading, the same as the previous day.

Meanwhile, forex turnover at the official window dropped by 2.4% on Tuesday, 28th September 2021.

According to data tracked by Nairametrics from the FMDQ, forex turnover declined from $130.83 million recorded on Monday to $127.68 million on Tuesday 28th September 2021.

Cryptocurrency watch

The world’s largest and most popular cryptocurrency, Bitcoin, plunged by 3.43% to trade at $40,890.36,  much below its record of near $65,000 traded in April.

The market capitalization of Bitcoin stood at $798.43 billion and it has been reeling under distress in the last one week due to China’s housing finance company Evergrande’s crisis that sent shockwaves across global markets.

The volatility in the cryptocurrency market pushed the global crypto market cap to a level of $1.88 trillion, which is a  4.27% drop over the last day. The total crypto market volume over the last 24 hours is $97.25 billion, which makes a 14.76% decrease.

A factor that is fueling a sharp decline in the cryptocurrency market is the recent crackdown by China’s bank that has destabilized markets across the world

The second largest cryptocurrency by market capitalization, Ethereum, dropped by 3.24% to trade at $2,849.62, while XRP was down by 2.83% to trade at $0.906.

Crude oil price

Oil prices dropped on Tuesday as Brent oil…