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

The Washington in the Fifties

 The Washington that I knew in the fifties was not the Washington of Dickens, Mrs. Trollope, and Laurence Oliphant. When I knew the capital of our country, it was not "a howling wilderness of first book of Adam and Eve deserted streets running out into the country and ending nowhere, its population consisting chiefly of politicians and negroes";[1] nor were the streets overrun with pigs and infested with goats. I never saw these animals in the streets of Washington; but a story, told to illustrate the best way of disposing of the horns of a dilemma proves one goat at least to have had the freedom of the city. It seems that Henry Clay, overdue at the Senate Chamber, was once hurrying along Pennsylvania Avenue when he was attacked by a large goat. Mr. Clay seized his adversary by the horns. So far so good, but how about the next step? A crowd of sympathetic bootblacks and newsboys gathered 4 around offering advice. "Let go, Mr. Clay, and run like blazes," shouted one
Post a Comment
Read more

Lai Mohammed condoles with Oyedepo over wife’s death

The Minister of Information and Culture, Alhaji Lai Mohammed,  on Friday condoled with Dr Hezekiah Oyedepo over the death of his wife and General Manager of the National Theatre, Dr Stella Oyedepo. Continue reading Lai Mohammed condoles with Oyedepo over wife’s death at Vanguard News. by Nwafor Polycarp via Vanguard News http://bit.ly/2L5PlVs Wikipedia Our Friends From Virginia
Post a Comment
Read more

All-new A-Class leads Mercedes-Benz sales growth in four months

MERCEDES-Benz delivered 181,936 cars in April (-5.5%) and a total of 742,809 in the first four months of the year (-5.6%). The ongoing sales success of the new A-Class resulted in worldwide growth for the compact cars in April (+6.0%). A contribution to this sales success came from the new A-Class Saloon, a further model complementing the compact-car entry into the world of premium saloon cars from Mercedes-Benz. Unit sales of SUVs were still dampened in April by the model changes. Continue reading All-new A-Class leads Mercedes-Benz sales growth in four months at Vanguard News. by Urowayino Warami via Vanguard News http://bit.ly/2XfBqOd Wikipedia Our Friends From Virginia
Post a Comment
Read more