Wednesday, June 03, 2015 4:14PM /Research
A review of today’s parallel market activities and oil price behaviour highlights the following:
Today, the naira exchanged at N216.50 to a dollar. The Nigerian currency sustains its marginal daily price gain since this week as it traded at N217/&1 the previous day. The official Naira/USD exchange rate remains at 196.95/$1.
The value of the naira has since the initial CBN devaluation in November 2014 traded between the band of N173 and N230 to USD1. The graph below shows in pictorial form the volatility of the naira against the dollar in the black market for the last 3weeks as it compares with the official rate.
Oil price continues to swing up and down in the international oil market following initial heavy decline since the last quarter of 2014. Today, the commodity recorded a marginal loss of 0.37% against the previous price of $65.05 to close at $64.81 per barrel. Recall that the initial huge decline in oil price in late 2014 caused the Federal Government of Nigeria to review downwards its benchmark oil price for 2015 budget.
Today’s Brent crude price is $11.81 above the $53 per barrel oil benchmark price for 2015 budget. You would recall that the Federal government of Nigeria initially set the benchmark price for 2015 budget at $78 before the first downward review to $73 of which circumstances forced it to review further down to $65 per barrel, which was proposed in the submitted 2015 appropriation bill to the national assembly but was eventually passed at $53.
Today, the price of Brent Crude oil (Nigeria’s crude oil type) was USD64.81 per barrel while the other variant of crude (WTI) traded at $60.77 per barrel as at 10.12ET.
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1. Speculative tendency drives Black market exchange rate
2. Exchange rate Opens Week Positive as Naira improves by 2.44%
3. Naira/USD Exchanges at N222/$1 as Brent Crude rises to $68
4. Euro value shoots up to N245/€1 amid low foreign currency demand
5. Naira/USD Sustains Sideways Movement as Dealers Remain Optimistic
6. Black Market activity resumes as Naira/USD rate remains indifferent
7. Low demand, Cautious Buyers stagnate Forex prices
8. Naira Gains by 0.68% WoW as Low key trade persists
9. Low dollar demand pushes Naira value to N217/$1
10.Official Rate Moves to N196.95/$1 as High dollar demand eases