The value of the Naira tumbled against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) and the black market segments on Friday, October 3.
Data obtained by Business Post showed that in the parallel market, the domestic currency crashed against the greenback by N5 to sell for N1,465/$1 compared with the N1,460/$1 it was traded a day earlier.
In the same vein, the Nigerian currency depreciated against the Dollar yesterday in the official market by N10.44 or 0.72 per cent to settle at N1,465.68/$1, in contrast to the previous day’s N1,455.24/$1.
Equally, the local currency depreciated against the Pound Sterling in the spot market during the session by N16.09 to sell for N1,956.42/£1 versus N1,979.92/£1, and lost N13.86 against the Euro to close at N1,720.85/€1 compared wtih the preceding day’s N1,706.99/€1.
However, at the bank, the exchange rate of the Naira to the Dollar appreciated by N10, especially at GTBank, to quote at N1,460/$1 compared with the previous session’s rate of N1,475/$1.
The depreciation of the local currency in the official and black markets came as FX demand pressure mounted, however, there are expectations that improved forex inflows and steady interventions by the apex bank will root the local currency within the N1,480 and N1,500 range.
Traders also pointed out easier funding conditions are helping to reduce pressure on liquidity, while analysts pointed out that rising reserves continue to lend the CBN enough power to intervene.
Speaking at a lecture series on Friday, the Governor of the CBN, Mr Yemi Cardoso, reiterated that the central bank will continue that it plays its role in maintaining confidence that the country has seen in recent months.
As for the cryptocurrency market, it was bullish yesterday, buoyed by strong institutional demand and broader macroeconomic pressures, with Binance Coin (BNB) up by 7.7 per cent to $1,171.56.
Further, Bitcoin (BTC) rose by 2.6 per cent to $122,374.45, Litecoin (LTC) improved by 1.9 per cent to $118.67, Ethereum (ETH) increased by 1.1 per cent to $4,505.44, Solana (SOL) jumped by 0.2 per cent to $229.48, and Ripple (XRP) gained 0.1 per cent to close at $3.03.
On the flip side, Dogecoin (DOGE) slumped by 0.3 per cent to $0.2546, and Cardano (ADA) depreciated by 0.2 per cent to $0.8544, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.