The value of Naira improved against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, September 2 by 34 Kobo or 0.02 per cent to settle at N1,525.76/$1 compared with the previous day’s value of N1,526.10/$1.
Also, the domestic currency appreciated against the Pound Sterling in the same market segment during the session by N26.30 to sell for N2,040.03/£1 compared with the preceding day’s rate of N2,066.33/£1 and gained N11.03 against the Euro to trade at N1,776.18/€1 against Monday’s price of N1,787.21/€1.
In the parallel market, the exchange rate of the local currency and its American counterpart remained unchanged for the another session, closing flat at N1540/$1.
The Naira is following the expected trend of remaining stable, boosted by robust foreign exchange (FX) liquidity and an efficient forex market.
Analysts expect sustained inflows from foreign portfolio investors (FPIs) due to stronger market confidence. Additionally, improving non-oil exports, as well as limited incentives for Naira speculation, are expected to reinforce steady inflows from domestic sources.
FX reforms instituted by Mr Yemi Cardoso-led central bank, new policies instituted by the federal government to boost local production, reduce forex demand pressure, and lessen domestic prices have been instrumental to macroeconomic stability.
Meanwhile, the cryptocurrency market was positive yesterday as traders focused on Friday’s US employment numbers and how it will likely determine whether and by how much the US Federal Reserve might cut interest rates later this month.
Comments by the central bank’s Chair, Mr Jerome Powell, at Jackson Hole had already given some form of optimism as analysts expect around 45,000 new jobs, with private payrolls closer to 60,000 and the unemployment rate edging up to 4.3 per cent
A weak unemployment print, however, might put a 50 basis point cut on the table as opposed to the universally expected 25.
Solana (SOL) jumped by 2.4 per cent to $208.77, Cardano (ADA) rose by 1.2 per cent to $0.8298, Litecoin (LTC) grew by 0.5 per cent to $111.22, Ripple (XRP) increased by 0.4 per cent to $2.82, Bitcoin (BTC) soared by 0.3 per cent to $110,642.80, and Dogecoin (DOGE) appreciated by 0.2 per cent to $0.2145.
However, Ethereum (ETH) declined by 2.1 per cent to $4,300.78, and Binance Coin (BNB) depreciated by 0.3 per cent to $850.34, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) were flat at $1.00 each.