Exchange rate remains indifferent as crude price drops to $62

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Thursday, June 04, 2015 4:40PM /Research

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

  •Today, the naira traded between N217 to a dollar across with an insignificant price change compared to yesterday’s exchange rate of N216.50/$1 at the black market.

  •The demand level shows no high level of activities.

  The Naira exchanged against the pounds sterling around N330/£1 the Naira/Euro rate traded is N238/€1.

   Official dollar rate remains at N196.95/$1.

  Brent crude price was at $62.38 per barrel as at 10.35ET.



Today, the naira exchanged at N217 to a dollar. The Nigerian currency closed at N217/$1 with a 0.5% decrease in value. 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.

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 loss of 3.75% against the previous price of $64.81 to close at $62.38 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 $9.38 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 USD62.38 per barrel while the other variant of crude (WTI) traded at $58.28 per barrel as at 10.35ET.

To View Commodity Prices Click Here.. 

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4. Euro value shoots up to N245/€1 amid low foreign currency demand

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7. Low demand, Cautious Buyers stagnate Forex prices

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