The Naira recorded no movement against the American Dollar at the Investors and Exporters (I&E) segment of the foreign exchange (FX) market on Tuesday, remaining at N461.50/$1.
This came as the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, bowed to pressure from the House of Representatives to waive the deadline for the return of old currency notes to banks for the new ones.
The apex bank had said old N200, N500, and N1,000 currency notes not returned to the bank on or before February 10, 2023, would lose their values, but the lawmakers argued otherwise, citing a part of the CBN Act, which says though such banknotes can lose their legal tender status, holders could still return them to the banks for a swap.
Yesterday, after dodging the lawmakers for a while, Mr Emefiele appeared before them and said Nigerians could still return their old notes after the deadline. This excited the lawmakers.
This development eased the tension in the system and brought stability to the local currency, coupled with a pullback in demand for forex in the official market.
During the session, FX trades valued at $85.04 million were recorded, 36.4 per cent or $65.45 million lower than the $150.49 million recorded in the previous session.
It was a similar situation at the Peer-2-Peer (P2P) forex window as the Naira showed no movement against the United States Dollar, trading at N759/$1.
But in the parallel market, the Nigerian currency appreciated against the American Dollar by N2 to settle at N750/$1 compared with Monday’s value of N752/$1.
Sadly, in the interbank window, the domestic currency fell against the Pound Sterling by 88 Kobo to trade at N570.93/£1 versus the preceding day’s N570.05/£1 and against the Euro, it lost N1.09 to settle at N502.51/€1, in contrast to the previous day’s N501.42/€1.
At the cryptocurrency market, there was a major green swing as investors await the Federal Reserve’s Wednesday decision on a potential interest rate increase.
Cardano (ADA) appreciated by 4.4 per cent to trade at $0.3871, Ripple (XRP) gained 3.7 per cent to sell at $0.4056, Litecoin (LTC) rose by 2.5 per cent to $97.14, Bitcoin (BTC) improved by 1.2 per cent to $23,158.47, Dogecoin (DOGE) jumped by 0.9 per cent to $0.0925, and Ethereum (ETH) expanded by 0.8 per cent to $1,584.00.
However, Binance Coin (BNB) pointed downwards by 0.8 per cent to sell at $310.03, Solana (SOL) slumped by 0.6 per cent to $23.94, while Binance USD (BUSD) and the US Dollar Tether (USDT) remained unchanged at $1.00 apiece.