Naira rebound, as Bitcoin dip to $52k

  1. $52

Nigeria’s Naira gained against the United States dollar on Wednesday, to close at N408.75/$1 at the Investors and Exporters window.

This is 0.26% gain against the US Dollar when compared to N409.8/$1 recorded on Tuesday.

However, in the parallel market, the naira remained relatively stable, as it closed at N486/$1, which is the same as recorded in the previous trading session.

Forex turnover increased marginally to $34.76 million, while Nigeria’s external reserve recorded the third consecutive increase, gaining $182.3 million in three days.

Trading at the official NAFEX window

Naira appreciated against the US Dollar at the Investors and Exporters window on Wednesday to close at N408.75/$1. This represents a N1.05k gain when compared to N409.8/$1 recorded on Tuesday, 23rd March 2021.

The opening indicative rate closed at N408.98 to a dollar on Wednesday. This represents an 80 kobo gain when compared to N409.78/$1 recorded on Tuesday.

READ ALSO: Senate Passes Bill To Establish Nat. Agriculture Dev. Fund

Also, an exchange rate of N414 to a dollar was the highest rate recorded during intra-day trading before it closed at N408.75/$1. This represents the highest rate recorded in almost two weeks.

It also sold for as low as N394/$1 during intra-day trading. A difference of N1 compared to N393 recorded in the previous day

Forex turnover at the Investor and Exporters (I&E) window increased marginally by 5% on Wednesday, 24th March 2021.

A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover increased from $33.11 million recorded on Tuesday, March 23, 2021, to $34.76 million on Wednesday.

Cryptocurrency watch

Bitcoin, the most priced and popular cryptocurrency in the world slumped by over 4.06%  to trade at $52,153.23 on Wednesday.

The highly coveted digital currency lost about $2,208.34 in value, representing a decline of 4.06% in a single day.

Ethereum also dipped by 5.75% on Wednesday to trade at $1,574.2 as of 11:52 pm on Wednesday.

This came on the back of Jerome Powell’s comment on the risk attached to investing in bitcoins and other digital assets.

Jerome Powell, who is the Chairman of US Federal Reserve had said the volatility of the crypto coins undermines their ability to store value, which is a basic function of money. He went further to state that bitcoin is not really useful as a store of value.

Meanwhile, JMP Securities has predicted that “$1.5 trillion of incremental capital” could flow into bitcoin, an amount greater than the cryptocurrency’s current market cap.

The firm sees more wealth management companies following Morgan Stanley’s example to offer bitcoin to their clients. “Around $30 trillion of assets in the U.S. retail wealth management industry currently do not have direct access to bitcoin.

 

 

 

 

 

Nairametrics

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.