Naira Strengthens 5.1% Against US Dollar In Official Market

The naira on Tuesday exhibited resilience in the official foreign exchange market, closing 5.1% stronger against the US dollar at N878.61/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

This marked a significant improvement compared to the previous day’s rate of N925.34/$1.

However, the naira faced challenges against other major currencies, with a decrease of N34.60 against the Pound Sterling, closing at N1,163.87/£1, and a loss of N26.36 against the Euro, settling at N996.05/€1.

Data from the FMDQ Securities Exchange indicated that FX transactions totaled $58.46 million on Tuesday, representing a 20.3% decrease from the previous day’s $73.33 million.

In the Peer-to-Peer (P2P) market, the Naira weakened against the US dollar by N12, reaching N1,369/$1 on Tuesday, compared to N1,357/$1 on the preceding day.

In the parallel market, the Naira depreciated against the US Dollar by N5, closing at N1,365/$1 on Tuesday, contrasting with the previous day’s rate of N1,360/$1.

Meanwhile, in the cryptocurrency market, Bitcoin experienced a 20% drop from its recent peak of $49,000 following the approval of the first spot bitcoin exchange-traded fund (ETF) in the United States. Bitcoin, the largest cryptocurrency, lost 0.3%, settling at $39,684.17.

Other major cryptocurrencies faced declines, with Ethereum (ETH) dropping 3.2% to $2,238.34, Dogecoin (DOGE) declining by 2.7% to $0.0781, Litecoin (LTC) dipping by 2.5% to $65.39, Binance Coin (BNB) slumping by 2.4% to $297.00, Ripple (XRP) shrinking by 1.7% to $0.5171, and Cardano (ADA) depreciating by 0.5% to $0.4756.

However, Solana (SOL) experienced a 0.5% increase, reaching $83.74, and the US Dollar Tether (USDT) appreciated by 0.04% to $0.9993, while the US Dollar Coin (USDC) traded flat at $1.00.