Skip to main content

Naira gains as external reserves rise $1.11bn in January

Naira gains as external reserves rise $1.11bn in January
Naira, CBN, PDP, FAAC, assets
Naira

By Babajide Komolafe & Elizabeth Adegbesan

The Naira appreciated in the Investors and Exporters (I&E) window by 3.9 percent in January as  the nation’s external reserves recorded the first monthly increase of   $1.11 billion during the month, courtesy of   the steady upward trend in crude oil price since December.

Data from the CBN showed that the external reserves rose to $36.395 billion Wednesday January 27th from $35.373 on December 31st last year. This translates to 3.1 or $1.11 billion monthly increase.

The monthly increase, the first since May last year, follows an upward trend in the reserves since December 18th, when it recorded the first daily gain to $34.841 billion, after a nine week decline which commenced   from $35.672 billion in October.

READ ALSOCOVID-19: Comply with mandatory mask-wearing to avert lockdown — Presidency

The steady increase in reserves since December 18th is driven by the rally in the price of crude oil, which accounts for 90 percent of the nation’s dollar earnings.

After falling below $25 per barrel in April, due to the severe impact of the COVID-19 pandemic,   crude oil prices went through a bumpy recovery which accelerated in December.

For example, the price of Nigeria’s Bonny Light crude oil rose steadily to $55.75 per barrel on Wednesday January 27th   from $46.67 per barrel on November 30th, indicating a 19.4 percent increase during the eight   weeks period.

Reflecting the increased dollar earnings, the naira appreciated in the Investors and Exporters (I&E) window by 3.9 percent or N15.87   to N394.13 per dollar in January from N410 per dollar at the end of December.

 

Turnover in I&E falls 84%   

However, the volume of dollars traded (turnover) in the   window of the foreign exchange market fell   by 84 per cent, year on year (YoY) to $906.45 million in January 2021 from $5.6 billion in January in 2020.

Financial Vanguard   analysis also showed that turnover in the window fell by 67 percent, month-on-month (m/m) from $2.78 billion in December 2020.

Vanguard analysis of weekly turnover in the window showed that $206.8 million was traded in the first week of January 2021. Turnover fell by 25   percent to $155.34 million in the second week and up by 98 percent to $306.88 million in the third week.

Turnover however    fell    by 29 percent to $237.42 million in the fourth week.

The post Naira gains as external reserves rise $1.11bn in January appeared first on Vanguard News.


by Urowayino Jeremiah via Vanguard News https://ift.tt/36te6mL Wikipedia Our Friends From Virginia
Labels:

Comments

Post a Comment

Popular posts from this blog

Hundreds of protesters storm Seplat oil facility in Delta

  By Paul Olayemi Hundreds of protesters from Ikweghwu community in Sapele Local Government Area of Delta State, stormed a crude oil facility owned by Seplat Petroleum Development Company, SPDC, on Thursday morning, demanding for jobs and infrastructure development. The protesters, who stormed the facility as early as 6 am, lamented that they were not benefiting from the community’s oil wealth, and demanding an end to what they tagged, oppression and intimidation from the management of the company, ALSO READ:  Protesters storm Ebonyi court over judge’s recusal from PDP case The protesters with inscriptions like ‘ we can’t be suffering in our own land’, ‘we need our Memorandum of understanding now’ ‘We need access control’ ‘8 years of slavery, we say no’ and so on, on their placards, danced at the company’s entrance with a DJ providing music non-stop preventing access to the facility. President General of the Community, Comrade David Uyelaju, said they need a clearly written Mem
Post a Comment
Read more

COVID-19: 10m cases globally, as US, Europe account for over 50 percent

More than 10 million cases of the new coronavirus have been officially declared around the world, half of them in Europe and the United States, according to an AFP tally at 0930 GMT Sunday, June 28, based on official sources. At least 10,003,942 infections, including 498,779 deaths, have been registered globally. Europe remains the hardest hit continent with 2,637,546 cases including 195,975 fatalities, while the United States has 2,510,323 infections including 125,539 deaths. ALSO READ:  COVID-19: Women’s jobs disproportionately affected, more to go — ILO Boris Johnson’s government is set to ease virus lockdown restrictions by opening pubs, restaurants and hairdressers among others across England from July, despite predictions of a second wave. The rate of infections worldwide continues to rise, with one million new cases recorded in just six days. The tallies, using data collected by AFP from national authorities and information from the World Health Organization (WHO), probab
Post a Comment
Read more

COVID19: No request from Nigerians abroad for evacuation ― Foreign Minister

Minister, Foreign Affairs Geoffrey Onyeama The Minister of Foreign Affairs, Mr Geoffrey Onyeama, says his ministry has not received any request from Nigerians aboard for their evacuation in view of the global Novel Coronavirus (COVID19) pandemic outbreak. Onyeama made this known on Tuesday in Abuja at the Presidential Task Force briefing on update of COVID-19 in the country. “As of now, we do not have any request from any of the embassies from Nigerians wishing to be evacuated from various countries. “But certainly, if we receive notification from any of our embassies, we will react accordingly,” he said. The minister, responding to an allegation, said it was not true that a Nigerian lady and her husband were poorly treated in Lome, Togo, while on their way back from Brazil, through Addis Ababa, to the country. He said that the Government of Togo was placing anyone coming from a foreign country in isolation, saying that they were rightly placed in a four-star hotel. “They wer
Post a Comment
Read more