Dollar waxes stronger as oil price jumps to $64 per barrel

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Thursday, April 23, 2015 5.29PM/Research

A review of today’s parallel market activities and oil price behaviour highlights the following:

  •         The naira dipped by 0.48% to close at N211/$1 as against N210/$1 it exchanged the previous day.

  •         The pattern of trade shows that the bulk dollar purchasers might not get enough dollars to satisfy their demands.

  •         The naira also exchanged against other foreign currencies as follows: Pounds sterling was selling for N327/£1 while the Euros traded at N235/€1.

  •         Official rate remains at N197/$1.

  •         Brent crude price gained 2.70% to close at $64.58 per barrel


Today, the naira exchanged at N211 to a dollar. The Nigerian currency closed in the red by 0.48% to extend the previous day’s loss yet further. The official Naira/USD exchange rate, however, remains at N197/$1.

The value of the naira has since the initial CBN devaluation 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.

Source: Fieldwork

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 gain of 2.70% against the yesterday’s price of 62.88 to close at $64.58. 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 $11.58 above the 2015 budget oil benchmark price of $53 per barrel. 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.

Today, the price of Brent Crude oil (Nigeria’s crude oil type) was USD64.58 per barrel while the other variant of crude (WTI) traded at $57.64 per barrel as at 11.01ET.

To View Commodity Prices Click Here.. 

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