Monday, 1st November 2021: The exchange rate between the naira and the US dollar closed at N414.98/$1, at the official Investors and Exporters window. Naira gained against the US dollar to close at N414.98/$1, Monday 1st November 2021, representing a 0.03% appreciation compared to N415.1/$1 recorded at the close of trading activities on Friday.

On the other hand, naira depreciated against the US dollar at the parallel market on Monday by 0.88% to close at N570/$1 compared to N565/$1 recorded as of the close of trading activities on Friday, 29th October 2021. This is according to information obtained by Nairametrics from BDC operators in Lagos.

Meanwhile, Nigeria’s foreign reserve recorded the first decline in over 2 months to close at $41.82 billion on Friday, 29th October 2021, representing an $8.8 million drop in the reserve position. The nation’s forex reserve decreased marginally by 0.02% on Friday from $41.828 billion recorded as of the previous day.

Trading at the official NAFEX window

The exchange rate gained against the US dollar on Monday, 1st November 2021, to close at N414.98/$1 compared to N415.1/$ recorded in the previous trading session. This represents a 0.03% appreciation in the exchange rate.

The opening indicative rate closed at N414.12/$1 on Monday, which represents a 37 kobo appreciation compared to N414.49/$1 recorded in the previous trading day.

An exchange rate of N444 to a dollar was the highest rate recorded during intra-day trading before it settled at N414.98/$1, while it sold for as low as N404/$1 during intra-day trading.

Meanwhile, forex turnover at the official window appreciated compared to the previous day, increasing by 71.4% on Monday, 1st November 2021.

According to data tracked by Nairametrics from FMDQ, forex turnover at the I&E window increased from $93.71 million recorded on Friday to $160.64 million on Monday, 1st November 2021.

Cryptocurrency watch

The cryptocurrency market closed trading activities on Monday on a bearish note with a decline of 0.08% to close at $2.62 trillion, indicating a marginal loss of $2.21 billion to crypto investors, having recorded a similar loss in the previous trading session.

Bitcoin also dipped in the same manner by 1.1% on Monday to close at $60,683.63 while Ethereum gained 0.25% to close at $4,299.39. On the other hand, XRP dipped 2.1% to close at $1.08991 on Monday, 1st November 2021.

According to the latest Finder Cryptocurrency Adoption Index for the month of October 2021, Nigeria had the highest rate of cryptocurrency ownership globally with 24.2%. Also, the survey found that men are 1.7 times more likely to own cryptocurrency than women. Similarly, of those that own crypto in the country, roughly 66.5% of them own Bitcoin.

Crude oil price

Brent Crude oil traded bullish on Monday, 1st November 2021 to close at $84.42 per barrel, indicating a 0.84% gain compared to $83.72 recorded at the end of the previous trading session. In the same vein, West Texas Intermediate gained 0.32% to close at $83.84 per barrel on Monday.

On the other hand, Natural gas dipped by 4.42% to close at $5.186, while heating oil gained 0.98% to close at $2.503.

Nigeria’s crude, Bonny Light recorded a 0.54% gain to close $83.5 per barrel while Brass River and Qua Iboe both declined 0.47% each to close at $83.04 per barrel.

Meanwhile, Oil and gas host communities in Ogoni, Rivers State wrote to the Federal Government to resettle all oil-impacted communities that were displaced as a result of the high level of environmental degradation, before any oil exploration activities can resume in the region.

The market continues to maintain a positive position with OPEC+ expected to meet on November 4th as output cut is expected to continue to support a steady rise in oil prices.

External reserve

Nigeria’s foreign reserve retreated for the first time in over two months as it declined marginally by 0.02% to close at $41.82 billion on Friday, 29th October 2021 compared to $41.83 billion recorded as of the end of the previous day.

Meanwhile, the nation’s foreign reserve gained $5.04 billion in the month of October, on the back of the $4 billion raised by the federal government from the issuance of Eurobond in the international debt market. The gain recorded in the month is higher than the $2.76 billion gain recorded in the month of September 2021, while the recent increase puts the year-to-date gain at $6.46 billion.

Nigeria’s foreign reserve position is heading towards hitting $42 billion with its current continuous gains, indicating more firepower to meet up with the FG’s pent-up obligations.