The Naira moved in different directions at the foreign exchange (FX) market on Tuesday as the Central Bank of Nigeria (CBN) has held back its direct interventions aimed to defend the local currency.
Yesterday, the Nigerian Naira appreciated against the United States Dollar in the black market by N5 to quote at N1,545/$1, in contrast to Monday’s exchange rate of N1,550/$1.
But, at the Nigerian Autonomous Foreign Exchange Market (NAFEM) window, the domestic currency depreciated against the greenback by N1.16 or 0.08 per cent to close at N1,534.93/$1 compared with the preceding day’s N1,533.77/$1.
However, the Naira appreciated against the Pound Sterling in the official market by N3.20 to close at N2,073.69/£1 versus the preceding session’s N2,076.89/£1 and declined by 68 Kobo to finish at N1,792.04/€1 versus N1,791.36/€1.
According to market analysts, the decision of the CBN to halt its forex sales to authorised dealers is likely because the Nigerian currency is trading within the expected range.
Updated data showed that the gross balance in the nation’s external reserves climbed to $40.962 billion on Monday.
As for the cryptocurrency market, profit-taking plunged the landscape into chaos as investors are turning cautious that the US Federal Reserve Chairman Jerome Powell’s speech set for Friday at Jackson Hold may come with a hawkish surprise.
Investors, who previously expected a September interest rate cut by the Federal Reserve, are now weighing the odds that Mr Powell might argue for holding rates steady during his Friday keynote address at the central bank’s Economic Symposium in Kansas City.
Despite recent signs of a weakening job market and slowing economy, last week’s PPI report reignited concerns of inflation reaccelerating in the US.
Cardano (ADA) slumped by 7.6 per cent to $0.8522, Ripple (XRP) declined by 3.8 per cent to $2.89, Litecoin (LTC) fell by 2.1 per cent to $114.23, Dogecoin (DOGE) slid by 1.8 per cent to $0.2132, Binance Coin (BNB) dropped 1.2 per cent to sell for $834.25, Ethereum (ETH) went down by 1.2 per cent to $4,183.29, and Bitcoin (BTC) depreciated by 1.1 per cent to $113,703.16.
However, Solana (SOL) appreciated by 0.6 per cent to $181.05, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.