Nigerian Naira Gains at I&E, P2P, Maintains Stability at Parallel Market

By Adedapo Adesanya

The exchange rate of the Nigerian Naira to its United States counterpart, the Dollar, was better for the former at the foreign exchange (FX) market on Tuesday.

The domestic currency gained strength against the greenback at the Peer-to-Peer (P2P) window yesterday by N22 to trade at N730/$1 compared with the preceding day’s value of N752/$1 as forex supply into the system improved during the trading day.

This was reflected in the performance of the local currency at the official FX window, the Investors and Exporters (I&E), as the country’s legal tender appreciated against the USD despite coming under significant forex demand pressure.

Data from the FMDQ Securities Exchange showed that the FX turnover at the spot market surged yesterday by 244.9 per cent or $100.49 million to $141.51 million from the $41.02 million recorded on Monday.

But despite this, the Naira appreciated by 0.06 per cent or 25 Kobo to close at N436.25/$1 in contrast to the N430.50/$1 it was traded on Monday.

In the parallel market, the exchange rate of the Naira to the American currency was stable yesterday at N713/$1.

However, in the interbank segment, the Naira depreciated against the Pound Sterling on Tuesday by N2.13 to N491.44/£1 from N489.31/£1 but gained 20 Kobo against the Euro to finish at N429.38/€1 compared with N429.58/€1.

As for the cryptocurrency market, the possibility of a rate hike in the United States on Wednesday took a toll on the landscape, causing investors to sell off the digital asset.

Solana (SOL) depreciated by 3.2 per cent to sell at $31.72, Bitcoin (BTC) slumped by 2.9 per cent to $18,973.88, Cardano (ADA) recorded a 1.9 per cent loss to close at $0.443, Ethereum (ETH) dropped 1.1 per cent to $1,345.91, Binance Coin (BNB) fell by 0.5 per cent to trade at $267.76 and Litecoin (LTC) declined by 0.3 per cent to $52.20.

But Ripple (XRP) gained 7.4 per cent during the session to settle at $0.4073, Dogecoin (DOGE) appreciated by 0.7 per cent to trade at $0.0588, while the value of Binance USD (BUSD) and the US Dollar Tether (USDT) remained unchanged at $1.00 each.