Exchange rate depreciates at NAFEX window as Bitcoin slumps by over 5%
- 5th May 2021
- Posted by: Hakeem
- Category: Currencies
Tuesday, 4th May, 2021: The exchange rate between the naira and the US dollar closed at N411/$1 at the official NAFEX window.
Naira depreciated at the Importers and Exporters window to close at N411 to a dollar on Tuesday, representing a N1 decline when compared to N410/$1 recorded on Friday, 30th April 2021.
On the other hand, the naira remained stable at the parallel market as it closed at N485/$1 on Tuesday, 4th May 2021, the same as recorded on the previous day.
Bitcoin dipped by 5.44% on Tuesday as crude oil prices edge closer to $70 per barrel, while Nigeria’s foreign reserve declined by 0.08% to close at $34.88 billion on Friday, 30th April 2021.
Trading at the official NAFEX window
The naira depreciated against the US dollar at the Investors and Exporters window on Tuesday to close at N411/$1, representing a N1 decline when compared to the N410/$1 that was recorded on Friday.
- The opening indicative rate closed at N410.5 to a dollar on Tuesday, 4th May 2021, representing a 37 kobo drop when compared to the N410.13/$1 recorded on Friday.
- Also, an exchange rate of N422 to a dollar was the highest rate recorded during intra-day trading before it settled at N411/$1. It also sold for as low as N395/$1 during intra-day trading, the same as recorded on Friday.
- Forex turnover at the Investor and Exporters (I&E) window declined by 25% on Tuesday, 4th May 2021.
- Data tracked by Nairametrics from FMDQ showed that forex turnover reduced from $56.81 million recorded on Friday, 30th April 2021 to $42.59 million on Tuesday, 4th May 2021.
Bitcoin, the world’s most popular cryptocurrency, dipped by 5.46% on Tuesday, 4th May 2021 to trade at $54,096.96 as of 11:22 pm.
- The highly sought-after digital asset lost about $2,743 in a single-day trade, coming on the back of comments made by the Vice-Chairman of Berkshire Hathaway, Charlie Munger.
- Mr Munger expressed disdain towards the digital asset, describing it as a disgusting development and contrary to the interests of civilisation.
- Also, Ethereum recorded a 2.47% decline having soared past $3,000 in the previous day’s trading session.
- The total crypto market capitalisation slumped by 4.28% to close at $2.16 trillion on Tuesday.
- Bitcoin Depot, a US company, has launched 355 new teller machines across the United States. The announcement comes as the number of ATM locations supporting crypto-fiat exchange now exceeds 19,000 globally.
Crude oil price
Oil prices edged closer to $70 per barrel on Tuesday as Brent Crude gained 2.8% to trade at $69.45.
- Oil prices rose to the highest level in about seven weeks, as oil demand rebounds in the United States and Europe despite the continual tragic spike in the Covid-19 numbers witnessed in India.
- The oil complex was also supported on Tuesday by a weaker U.S. dollar, which fell after Monday’s data showed that U.S. manufacturing activity grew in April at a slower pace than expected.
- This came on the back of the expected economic and oil demand recovery, owing to the easing of lockdown restrictions by U.S. states towards a full reopening of the economy.
- The bullish run in the global oil market is in line with Goldman Sachs’ prediction that oil prices will rise to $80 per barrel this summer.
Nigeria’s external reserve plunged for the 10th consecutive day on Friday, 30th April 2021 as it dipped $27.74 million to close at $34.88 billion.
- The nation’s foreign reserve declined from $34.91 billion recorded as of Thursday, 29th April 2021 to $34.88 billion on Friday, representing a 0.08% decline.
- Nigeria’s foreign reserve has dipped $373.57 million since 16th April 2021 to date.