The Naira suffered a N4.32 or 0.29 per cent depreciation against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, selling at N1,475.35/$1, in contrast to the N1,471.03/$1 it was exchanged on Thursday.
The domestic currency also crashed against the Pound Sterling in the same market segment during the trading session by N3.59 to close at N1,979.77/£1 compared with the previous day’s value of N1,976.18/£1, and declined against the Euro by N8 to settle at N1,722.92/€1 versus the N1,714.49/€1 it was sold in the preceding session.
Similarly, the Nigerian currency tumbled against the United States Dollar in the black market yesterday by N5 to sell for N1,490/$1 compared with the preceding day’s rate of N1,485/$1.
But, at GTBank, the exchange rate of the local currency and its American counterpart remained unchanged at N1,475/$1.
Forex pressure remained on the Nigerian Naira and analysts expect more next week due to the decision of foreign investors to sell local assets amid global risk aversion and limited supply of the greenback.
Other positives like the ongoing disinflationary trends, sustained current account surplus, steady build-up in FX reserves, are being impacted by escalating trade tensions between the US and China and weak Dollar supply by the Central Bank of Nigeria (CBN) while oil prices struggle.
Meanwhile, the cryptocurrency market witnessed a recovery following cross-market weakness after the 100 per cent tariff declaration of the administration of President Donald Trump of the United States on Chinese imports sent risk assets lower.
Analysts noted that heavy concentration of bids around current levels suggests accumulation rather than capitulation, with Litecoin (LTC) rising by 7.0 per cent to $91.36, and Binance Coin (BNB) increasing by 6.3 per cent to $1,111.48.
Further, Ripple (XRP) appreciated by 5.9 per cent to $2.36, Solana (SOL) grew by 5.2 per cent to $186.39, Cardano (ADA) added 5.2 per cent to trade at $0.6348, Dogecoin (DOGE) jumped by 5.1 per cent to $0.1889, Ethereum (ETH) expanded by 4.0 per cent to $3,887.01, and Bitcoin (BTC) improved by 1.8 per cent to $106,882.24, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.