On Tuesday, 4th of May, the foreign exchange rates closed at N485 per dollar while Bitcoin dipped by over 5%.
It has been over a decade and inflationary actions have struck the Nigerian naira further driving exchange rates to dangerous levels. This has gotten in the currency closer to the N500 per dollar mark. This has made many Nigerians go to different lengths to protect their wealth from the weakening currency. This has been by use of foreign and digital currencies, not commonly Bitcoin. Meanwhile, the country’s number one digital currency faces bearish market actions.
Major Updates
- N1 decline in exchange rates settles at N411 per dollar.
- Bitcoin dips by 5.44% to $54,096.96.
- Foreign Reserve plunges by 0.08% to $34.88 billion.
- Goldman Sachs’ crude $80/barrel oil price prediction getting closer.
It was recorded by NAFEX that the rate of the USD to the NGN closed at N411 per dollar as of Tuesday, 4 May. This was a plunge by N1 as prices were previously recorded to be N410 per dollar on Friday, 30th of April.
On Tuesday, the recorded intraday high was set at N422 per dollar. This was before prices stabilized and finally closed at the rate of N411 per dollar. The lowest however was N395 per dollar, similar to records from Friday.
The country’s foreign reserve has also been dumped by 0.08%. This has set a declined rate of 34.88 million USD, as recorded on Friday 30th of April 2021.
Meanwhile, the price of the top cryptocurrency, Bitcoin, dipped on the same day by 5.44%. This left the cryptocurrency trading at $54,096.96; It was a dip by 2743 USD.
In other news, crude oil prices trail closer to $70 per barrel. A bearish action for the market as predicted by Goldman Sachs. The firm stated that oil prices would reach $80 per barrel.
Due to reduced lockdown restrictions, oil manufacturing processes had peaked in April but operations were slowed. This is still a result of prevailing restrictions.
Conclusion
Overall bearish markets reign in the crude oil and crypto industries as well as local currencies. Inflation and hedging it has been the number one concern in Nigeria but unlike the Naira and Crude oil rates, Bitcoin is sure to rebound and maintain its place as the most highly demanded asset.
Question of the Day
Do you think Crude Oil and the Naira will ever regain their former glory?
