The Naira further improved its value against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, September 29, by N4.31 or 0.29 per cent to settle at to N1,476.35/$1, in contrast to last Friday’s value of N1,480.66/$1.
However, the local currency depreciated against the Pound Sterling in the official market yesterday by N4.12 to sell for N1,985.39/£1 compared with the preceding session’s value of N1,981.27/£1, and lost N4.27 against the Euro to close at the rate of N1,733.68/€1 compared with the previous trading day’s N1,729.41/€1.
In the parallel market segment, the Nigerian currency was traded against the greenback during the session at N1,490/$1 and at GTbank, its exchange rate stood at N1,485/$1 on Monday.
The recent appreciation of the Naira has been influenced by increased liquidity in the foreign exchange (FX) market, rising external reserves, and reduced speculative activities, largely driven by the reform measures of the Central Bank of Nigeria (CBN).
Market analysts explained that these have helped restore some confidence in the market and anchor short-term stability despite ongoing structural challenges, this month, with rates projected to remain stable around N1,480/$1 to 1,490/$1 levels this week.
“We anticipate a mild appreciation of the Naira in the near term, supported by sustained foreign portfolio flows and CBN interventions,” analysts at Coronation Merchant Bank said.
Regardless, as the fourth quarter of the year beckons, analysts say the sustainability of the appreciation will be determined by the CBN’s capacity to sustain interventions and attract FX inflows from key sources such as oil exports, diaspora remittances, and foreign portfolio investments.
As for the cryptocurrency market, it was bullish as traders were optimistic following recent signals from the government and a decisive fourth quarter, with Ethereum (ETH) chalking up 2.2 per cent to sell at $4,193.25.
Further, Bitcoin (BTC) gained 2.0 per cent to sell at $114,042.44, Binance Coin (BNB) appreciated by 1.8 per cent to $1,025.31, Ripple (XRP) jumped by 1.6 per cent to $2.89, Solana (SOL) grew by 0.9 per cent to $210.13, Cardano (ADA) rose by 0.8 per cent to $0.8028, Litecoin (LTC) increased by 0.6 per cent to $106.57, and Dogecoin (DOGE) went up by 0.5 per cent to $0.2326, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.