Naira/USD Sustains Sideways Movement as Dealers Remain Optimistic

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Thursday, May 07, 2015 5:25PM / Research

 

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

   ·Today, the naira traded around N222.50/$1 with no significant price change compared to yesterday’s exchange rate of N221.50/$1 at the black market.

   ·The dollar sustains week patronage even though there are expectations of another possible devaluation of the naira as believed in some quarters among BDC operators.

   · The exchange rate between Naira and pounds sterling improved to N330/£1 while Naira/Euro rises further to N247/€1 on increasing demand. Yesterday’s Naira/Pounds rate was N335/£1 while Naira/Euro was N245/€1.

   ·  Official CBN dollar rate remains at N197/$1.

   ·  Brent crude price was at $68.41 per barrel as at 11.09ET.

 

EXCHANGE RATE

Today, the naira exchanged at N222.5 to a dollar. The Nigerian currency closed at N222.5/$1 with no significant drop in value. 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.

 

 

 

OIL PRICE
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 0.60% against the previous price of 68.00 to close at $68.41. 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 $15.41 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 USD66.22 per barrel while the other variant of crude (WTI) traded at $59.37 per barrel as at 11.09ET.

 

To View Commodity Prices Click Here.. 


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1. Naira/USD rate leaps to N220/$1 amid strong dollar demand

2. Exchange rate closes flat amid weak market conditions

3. Naira Loses ground as Brent Crude Price moves to $65

4. Speculative tendency drives Black market exchange rate

5. Exchange rate Opens Week Positive as Naira improves by 2.44%

6. Naira/USD Exchanges at N222/$1 as Brent Crude rises to $68

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

 

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