The Naira appreciated against the United States Dollar by 42 Kobo or 0.03 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, August 27 to sell for N1,537.19/$1 compared with the preceding day’s N1,537.61/$1.
Also, the domestic currency improved its value against the Pound Sterling in the spot market yesterday by N7.49 to quote at N2,066.75/£1 compared with the previous day’s value of N2,074.24/£1 and chalked up N11.24 against the Euro to close at N1,781.93/€1 versus Tuesday’s closing price of N1,793.17/€1.
In the same vein, the Nigerian Naira gained N2 against the US Dollar in the parallel market at midweek to quote at N1,545/$1, in contrast to the N1,547/$1 it was traded a day earlier.
Recent FX demand pressure on the local currency eased as a boost in the external reserves signalled enough power in the Central Bank of Nigeria (CBN) to inject forex into the system.
Nigeria’s gross external reserves increased to $41.220 billion on Tuesday, the highest level seen since 2021, from $41.190 billion at the beginning of the week.
This tracks with expectations that it could rise to about $45 billion by the end of the year, supported by steady offshore inflows and potential external borrowings planned by the government. This could happen barring any external shocks or risks.
Meanwhile, the cryptocurrency market improved as traders continued to observe developments around expectations of monetary easing and increased institutional demand.
The broader cryptocurrency market advanced 1.46 per cent despite trading volume declining 19.67 per cent to $171.7 billion, indicating reduced activity amid the modest price gains
Solana (SOL) rose by 3.6 per cent to $210.76, Bitcoin (BTC) appreciated by 1.5 per cent to $112,989.50, Dogecoin (DOGE) grew by 1.4 per cent to $0.2237, Binance Coin (BNB) jumped by 1.2 per cent to $869.81, and Cardano (ADA) expanded by 0.6 per cent to $0.8692.
Conversely, Ethereum (ETH) lost 0.6 per cent to sell at $4,575.84, Ripple (XRP) fell by 0.3 per cent to $2.99, and Litecoin (LTC) dipped by 0.2 per cent to $113.54, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.