The Naira posted a N5 appreciation against the Dollar in the black market window of the foreign exchange (FX) market on Friday, October 24, selling at N1,485/$1 compared with the previous day’s value of N1,490/$1.
In the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment, it improved against the Dollar during the session by N2.53 or 0.17 per cent to close at N1,457.96/$1 compared with Thursday’s exchange rate of N1,460.49/$1.
It further gained N2.51 against the Pound Sterling in the official market yesterday to quote at N1,946.52/£1 versus the preceding day’s N1,949.03/£1, but lost 84 Kobo against the Euro to settle at N1,696.33/€1, in contrast to the N1,695.49/€1 it was traded a day earlier.
At GTBank, the domestic currency gained N5 against the United States Dollar on Friday to finish at N1,470/$1 compared with the previous day’s N1,475/$1.
The Naira continued to strengthen as FX pressure continued to ease as economic reforms continue to drive positive sentiments and confidence across markets, complimenting liquidity into the market from the Central Bank of Nigeria (CBN) and other channels as well as rising compliance with regulations.
On Friday, Nigeria was officially delisted from the grey list of the Financial Action Task Force (FATF), after two years of sustained effort, reform and inter-agency coordination aimed at strengthening the country’s Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) framework.
The development could influence the FX market by increasing foreign investments leading to capital inflows and ease frictions associated with cross-border flows and drive more stability.
However, analysts say Nigeria must ensure that conditions for the exit from the grey list must be improved upon, adding that a slide back may undo good impact already established.
A look at the cryptocurrency market showed most tokens were in green, though market sentiment remained cautious, with traders opting for selective exposure amid ongoing macroeconomic volatility.
October has been defined by forced selling and false starts and on track to become the worst since 2015, dampening an otherwise bullish month.
Ripple (XRP) increased by 4.3 per cent to $2.54, Solana (SOL) went up by 1.1 per cent to $194.09, Dogecoin (DOGE) grew by 0.8 per cent to $0.1980, Bitcoin (BTC) rose by 0.6 per cent to $111,537.38, Cardano (ADA) jumped by 0.5 per cent to $0.6517, and Litecoin (LTC) soared by by 0.5 per cent to $96.52.
On the flip side, Binance Coin (BNB) slipped by 0.9 per cent to $1,112.69, and Ethereum (ETH) went down by 0.3 per cent to $3,929.77, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained at $1.00 each.