Despite the increase in oil prices, the 30-days moving average of the foreign exchange reserve plunged by $1.02 billion from $36.19 billion which it was as at February 1, 2021 to $35.17 billion as at 24th of the same month.
As at the beginning of the year, the dollar maintained the $36 billion mark before starting to gradually plunge which can be attributed to the continuous intervention by the Central Bank of Nigeria (CBN) in the foreign exchange market.
In February also oil prices rose for a fourth straight month. Brent oil settled at $64.42 as at Friday down by 3.7 per cent indicating a 2.5 per cent increase for the week and 15 per cent increase for the month.
Meanwhile, at the primary market the naira stabilised at N380/ it appreciated against the pounds sterling and the euro to trade at N529.1 and N460.25 from N532.68 and N461.20.
At the Investors and Exporters (I&E) window the naira declined week on week by -0.06 percent and closed at N410.25 with a turnover of $37.49 million on Friday. At the parallel market the naira depreciated against the dollar, pounds sterling and euro to N482/$, N672 and N583 from N480, N670 and N580 respectively. At the BDC market, it closed at $/N479, N667, and N585/euro.
Money market rates were relatively lower at the beginning of the week which was supported by robust system liquidity. This trend continued for most of the trading session this week.
At the close of the trading session this week, Open Buyback (OBB) closed at 5.67 per cent while Overnight (O/N) rates closed at 6.33 percent indicating a Week-on-Week (W-o-W) significant decline of -71.65 percent for OBB and -69.12 percent for O/N rates.