The value of the Nigerian Naira improved against its global counterparts at the official foreign exchange window, according to the Central Bank of Nigeria’s available data.
The Nigerian Naira gained 14 kobo against the United States Dollar to N416.27, while the local currency appreciated by N4.017 against the Pounds Sterling to N553.14. Naira to Euro exchange rate stood at N456.98, an N4.94 gain from N461.92 it exchanged on Thursday.
The rates quoted above were the rates the Central Bank of Nigeria sells and buys from the International Money Transfer Operators (IMTOs) and the Deposit Money Banks (DMBs).
However, at the unregulated black market patronised by most Nigerians, the exchange rates remained overwhelmingly high as the Nigerian Naira is presently trading at N577.00 per dollar, largely due to persistent demand at that section of forex.
Foreign Reserves
Nigeria’s foreign reserves inched slightly higher to $39.873 billion from $39.865 billion recorded on March 3, 2022. The reserves seem to be responding to Nigeria’s only viable source of foreign revenue generation, the surge in crude oil to over 14 years high on Monday.
Still, the reserves remained weak when compared to Nigeria’s population. This, in part, is due to the nation’s inability to broaden its manufacturing output and improve export receipts.
The foreign reserves is expected to inch higher as global oil prices continue to rise. Few experts are already predicting $200 a barrel, above the $150 predicted by Investors King.
Crude Oil
The price of Brent crude oil, the benchmark for Nigeria’s type of crude oil, rose by 18% to over $130 a barrel in the early hours of Monday during the Asian trading session.
Oil jumped on concerns that U.S and allies, largely European nations, sanctions on Russian crude oil could worsen the already tight global oil market pushed crude oil above $150 a barrel. This was after Russia had demanded a written agreement from the United States to guarantee that the revival of the U.S-Iran nuclear deal will not affect Moscow’s trade relation with Iran.
This, experts claimed could slow down the U.S-Iran nuclear deal talks and further push back the expected date for Iranian oil to hit global market.
Cryptocurrency to Naira
Cryptocurrencies remained in red and largely function as risk assets against certain notions that the unregulated digit assets are safe-haven assets necessary to hedge against inflation in terms of crisis like Gold.
Bitcoin to Naira exchange rate dipped by 0.40 to N15.900 million in the last 24 hours, while Ethereum to Naira exchange declined by 3.04 percent to N1.053 million.
The decline continues against Cardano, Binance Coin (BNB) and Tether as they shed 2.84%, 0.47% and 0.73%.