Naira Slumps to N1,506/$1 at NAFEM, Firms to N1,575/$1 at Parallel Market

Prevailing pressures mounted on the local currency despite moves by the Central Bank of Nigeria (CBN) to stabilise the market, with its value weakening further against the Pound Sterling at the official market yesterday by N16.12 to quote at N1,872.10/£1 compared with the preceding day’s N1,855.98/£1 and against the Euro, it lost N14.14 to trade at N1,559.96/€1, in contrast to Tuesday’s closing price of N1,545.82/€1.

However, the Nigerian Naira appreciated against the US Dollar at midweek by N5 to finish at N1,575/$1 versus the previous trading session’s rate of N1,580/$1.

Meanwhile, in the cryptocurrency market, there were some recoveries following far stronger than expected US inflation data.

US inflation unexpectedly marched higher in January, sending crypto and traditional markets sharply lower.

The closely-watched Consumer Price Index (CPI) rose 0.5 per cent in January versus an expected 0.3 per cent and December’s 0.4 per cent pace. On a year-over-year basis, CPI was higher by 3.0 per cent against forecasts for 2.9 per cent in December.

Both crypto and traditional markets also reacted positively to President Trump latest move to end to the Russian war in Ukraine.

While he was estifying before Congress for the second consecutive day, Federal Reserve Chairman Jerome Powell said the CPI data showed the US central bank is close, but not quite there on inflation, indicating more interest rate cuts couldn’t happen sooner.

At the session, Binance Coin (BNB) gained 10.1 per cent to end at $701.98, Litecoin (LTC) rose by 3.3 per cent to $122.16, Dogecoin (DOGE) improved by 1.7 per cent to sell at $0.2589, Ethereum (ETH) added 1.6 per cent to close at $2,669.80, Cardano (ADA) went up by 1.5 per cent to $0.7855, Ripple (XRP) expanded by 1.0 per cent to $2.44, and the US Dollar Tether (USDT) chalked up 0.10 per cent to sell for $1.00.

On the flip side, Solana (SOL) slumped by 1.6 per cent to $192.98, and Bitcoin (BTC) shed 0.2 per cent to trade at $96,016.30, while the US Dollar Coin (USDC) remained unchanged at $1.00.