The exchange rate of the Naira to the US Dollar moved in different directions on Tuesday at the foreign exchange (FX) market, according to data collated by Business Post.
In the parallel market, the Nigerian currency depreciated against its American counterpart yesterday by N5 to trade at N1,525?41 compared with the preceding day’s value of N1,520/$1.
However, in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira appreciated the greenback by N1.64 or 0.11 per cent to quote at N1,506.21/$1 versus the previous day’s N1,507.85/$1.
In the same vein, the domestic currency improved its value against the Pound Sterling in the official market by N2.98 to sell for N2,041.62/£1 compared with the previous session’s N2,041.62/£1, and gained N4.96 on the Euro to finish at N1,765.73/€1 compared with the preceding day’s N1,770.69/€1.
The Naira has attained stability this month, backed by robust FX liquidity and an efficient FX market. Specifically, analysts expect sustained inflows from foreign portfolio investors (FPIs) due to stronger market confidence, with Coronation Merchant Bank seeing the domestic currency trade within the N1,500/$1 – N1,600/$1 in the near term.
“We reiterate our expectation for the market rate to hover between N1,500/$ and N1,600/$, supported by increased confidence from foreign portfolio investors (FPIs),” analysts at Coronation Merchant Bank said.
Total foreign exchange inflows into the Nigerian economy rose by 4 per cent quarter-on-quarter and 26 per cent year-on-year to $29 billion in Q1 2025.
Also, improving non-oil export receipts and diminished incentives for speculative positioning in the Naira are likely to sustain the momentum.
In the cryptocurrency market, there were mixed outcomes as traders awaited US inflation data like Core Consumer Price Index (CPI) out on September 11 and the US Federal Reserve’s much-anticipated rate decision, which will set the stage for the next decisive move.
Bitcoin (BTC) dropped 1.1 per cent to sell at $111,433.25, Ripple (XRP) fell by 0.9 per cent to $2.94, Ethereum (ETH) went down by 0.9 per cent to $4,229.35, Litecoin (LTC) slid by 0.6 per cent to $112.60, and Cardano (ADA) slumped by 0.2 per cent to $0.8710.
On the flip side, Solana (SOL) gained 1.1 per cent to end at $218.35, Binance Coin (BNB) appreciated by 0.4 per cent to $881.25, and Dogecoin (DOGE) grew by 0.3 per cent to $0.2387, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.