The Naira weakened further against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, August 12 amid renewed foreign exchange (FX) pressures.
At the official market yesterday, the local currency lost 0.1 per cent or N1.41 against the greenback to sell for N1,537.38/$1 compared with the preceding day’s N1,535.97/$1.
Equally, the domestic currency depreciated against the Pound Sterling at the spot market by N13.40 to settle at N2,073.54/£1, in contrast to Monday’s exchange rate of N2,060.14/£1 and against the Euro, it tumbled by N8.89 to close at N1,791.64/€1 versus the N1,782.75/€1 it was traded a day earlier.
However, in the black market, the Nigerian Naira gained N5 against the US Dollar on Tuesday to quote at N1,555/$1 compared with the preceding session’s rate of N1,560/$1.
Pressure came on the Nigerian currency yesterday as volatility in the oil market, particularly the recent downward trend in crude prices, have introduced headwinds to the nation’s reserves amid persistent FX injections by the Central Bank of Nigeria (CBN).
Despite the expected short-term pressure, there are anticipation that the Naira will hold relatively steady, especially at the official window, barring any major shocks in global commodity or financial markets.
As for the cryptocurrency market, there were gains as the US government suggested that there should be a considerable cut in interest rates, even though the decision rests with its central bank, the US Federal Reserve.
Treasury Secretary Scott Bessent suggested the Federal Reserve should consider a 50 basis point rate cut at its upcoming September meeting.
“The real thing now to think about is should we get a 50 basis-point rate cut in September,” Mr Bessent told Fox News. He added that the US Federal Reserve could have cut rates in June if it had been given accurate data, which he described as a “foundational issue” at the central bank.
This statement came as President Donald Trump is looking to replace the head of the central bank, Mr Jerome Powell, and since Mr Bessent was tasked with this; his words surely carry some weight.
Solana (SOL) increased by 12.9 per cent to $197.56, Litecoin (LTC) jumped by 11.3 per cent to $133.49, Cardano (ADA) rose by 9.2 per cent to $0.8449, and Ethereum (ETH) improved by 8.4 per cent to $4,652.43.
Further, Dogecoin (DOGE) gained 6.4 per cent to sell at $0.2382, Binance Coin (BNB) soared by 3.6 per cent to $837.39, Ripple (XRP) surged by 3.3 per cent to $3.24, and Bitcoin (BTC) appreciated by 0.7 per cent to $119,554.04, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.