Exchange Rate: Naira Consolidates on Stabilizing Demand

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Friday, March 06, 2015 6.03PM/ Research

 

A review of today’s activities with respect to events at the foreign exchange market confirmed the following key developments:

   •   Today, the naira exchanged for N225/$1 to record +0.44% gain against yesterday’s price of N226/USD1, same gain it recorded the previous day.

   •   The demand in the market continues to be modest

  •   The naira today traded against the Pounds sterling at N337.5/£1 while the Naira/Euros exchange rate was N250.5/€1

  

Today, the naira exchanged for N225 to a dollar in the parallel market on modest demand while the pounds sterling traded between N335-N340 to one pound and the Euros at N250.5 to one euro. 

 

EXCHANGE RATE

Our daily exchange rate monitor of the performance of the naira against the dollar following the devaluation of the Nigerian currency in November 2014 continues to highlight how the naira has fared against the dollar and other currencies over the months.

 

Today, the naira traded at N225 to a dollar. The value of the naira has depreciated significantly in the face of several measures by the CBN to stem the worsening value of the naira against major currencies in the world. Following the initial devaluation of the naira by 8% coupled with the CBN’s technical devaluation, new official Naira/USD exchange rate is now N197/$1 as at today.


Source: Fieldwork

 

The value of the naira has since the initial CBN devaluation traded between N173 and N230 to a USD1. The graph above 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, which has moved up from N168/$1 to N197/$1.


OIL PRICE
Oil price has also witnessed heavy decline since the last quarter of 2014. Today, the commodity recorded a loss of -1.20%, when compared to the previous day’s price of $60.84, to close at $60.11 on March 6th, 2015. The initial huge decline in oil price caused the Federal Government of Nigeria to review downwards its benchmark oil price for 2015 budget.

 

Today’s Brent crude price is still below the $65 benchmark oil price for the yet-to-be-passed 2015 budget, though the budget is now receiving attention from the national assembly and might be benchmarked between $52 to $54 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.



Today, the price of Brent Crude oil (Nigeria’s crude oil type) was USD60.11/bbl while the other variant of crude (WTI) traded at $50.06 per barrel.

 

To View Commodity Prices Click Here.. 


Related News

1.  Heard on the Street - People are avoiding the pounds as dollar drops

2.  Exchange rate Continues to Rise amid fears of more devaluation

3.  Naira-Dollar differential rises further to N214/$1 as CBN injects more dollar

4.  Dollar records strong demand as CBN defends the Naira further

5. Forex market tumbles as CBN Closes rDAS window; huge implications to follow

6. Exchange rates Gallop as Naira falls by 0.82% while Operators take to hoarding

7. Exchange rate: Price Jump slows down as demand eases

8. Naira drops by -0.45% as Low Demand Prevails

10. Naira/Dollar Rate Closes Flat amid widespread scarcity

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