Wednesday, third November 2021: The trade charge between the naira and the US greenback closed at N414.8/$1, on the official Traders and Exporters window. Naira appreciated in opposition to the US greenback to shut at N414.8/$1 on Wednesday third November 2021, representing a 0.07% achieve in comparison with N415.07/$1 recorded on the shut of buying and selling actions on Tuesday.
However, naira remained flat in opposition to the US greenback on the parallel market on Wednesday to shut at N570/$1, the identical as recorded as of the shut of buying and selling actions on Tuesday, 2nd November 2021. That is in keeping with data obtained by Nairametrics from BDC operators in Lagos.
Nigeria’s overseas reserve continued on a decline on Tuesday with a 0.04% drop to shut at $41.78 billion on 2nd November 2021. This represents a $15.54 million decline in comparison with $41.79 billion recorded as of Monday, 1st November 2021.
Buying and selling on the official NAFEX window
The trade charge gained in opposition to the US greenback on Wednesday, third November 2021, to shut at N414.8/$1 in comparison with N415.07/$ recorded within the earlier buying and selling session. This represents a 0.07% appreciation within the trade charge.
The opening indicative charge closed at N413.76/$1 on Wednesday. This represents a 50 kobo appreciation in comparison with N414.16/$1 recorded within the earlier buying and selling day.
An trade charge of N444 to a greenback was the best charge recorded throughout intra-day buying and selling earlier than it settled at N414.8/$1, whereas it offered for as little as N404/$1 throughout intra-day buying and selling. The best charge recorded throughout the day has been the identical up to now seven buying and selling classes.
Foreign exchange turnover on the official window elevated considerably by 113.1% to $133.37 million.
In keeping with knowledge tracked by Nairametrics from FMDQ, foreign exchange turnover on the I&E window elevated from $62.58 million recorded on Tuesday to $133.37 million on Wednesday, third November 2021.
The cryptocurrency market additionally began bearish on Thursday regardless of the optimistic rally recorded on Tuesday. The overall crypto market cap at present stands at $2.733 trillion, representing a 0.41% decline in comparison with yesterday.
In the identical vein, Bitcoin dipped marginally by 0.44% to commerce at $62,654.29, whereas Ethereum additionally dipped 0.75% to commerce at $4,572.26. In the meantime, November has been recognized for buying and selling bullish since 2013, except 2018 and 2019. The market has already gained over 3% in November having already recorded a 39.92% surge within the earlier month.
The bullish run got here amid quite a few optimistic developments within the trade. These included a reassurance from Fed Chair Jerome Powell and SEC Chief Gary Gensler that the US has no intentions to ban BTC and the next launch of two Bitcoin Futures ETFs within the nation.
In the meantime, Goldman Sachs has reportedly defined in a analysis notice circulated by the financial institution’s managing director of International Markets, Bernhard Rzymelka, that the value of Ether (ETH) might hit $8,000 by year-end. The notice particulars that, cryptocurrencies have traded consistent with inflation breakevens since 2019, in keeping with Zerohedge.
Crude oil worth
The crude oil market has retreated considerably on indicators of dropping demand, as Brent Crude dipped over 4% to shut at $81.21 per barrel on Wednesday. The bearish efficiency of the market was attributed to sluggish demand and rising inventories.
In keeping with a report, Hedge funds are starting to cut back their shopping for spree, which has resulted in a unfavourable turnout within the world crude oil market. In the identical vein, West Texas Intermediate slid by 3.63% to shut at $80.86 per barrel, whereas pure gasoline gained 2.31% to shut at $5.67 on Wednesday.
Nonetheless, the Chief Monetary Officer of BP Plc, Murray Auchincloss throughout a convention name on Tuesday mentioned that demand will proceed to extend and attain pre-pandemic ranges sooner or later in 2022. In keeping with him, “OPEC+ is doing an excellent job managing the stability, so we stay constructive on oil costs.”
Nigeria’s overseas reserve declined for the third time in a row, having recorded steady optimistic development up to now two months. The reserve stage dipped marginally by 0.04% to shut at $41.78 billion as of 2nd November 2021, in comparison with $41.79 recorded yesterday.
In the meantime, the nation’s overseas reserve gained $5.04 billion within the month of October, on the again of the $4 billion raised by the federal authorities from the issuance of Eurobond within the worldwide debt market. The positive factors recorded within the earlier month is larger than the $2.76 billion achieve recorded within the month of September 2021, whereas the latest lower places the year-to-date achieve at $6.42 billion.
Up to now within the month of November, Nigeria’s reserve has misplaced $53.7 million. Whereas the explanation for the latest decline nonetheless stays unclear, oil costs proceed to commerce above $80 per barrel on the world crude oil market.