28.6% Surge in FX Transactions Weakens Naira at Official Market

Image

A woman takes Nigerian Naira from a bank’s automated teller machine (ATM) in Ikeja district in the commercial capital Lagos November 12, 2014. Nigeria’s naira currency weakened slightly on the interbank market on Tuesday due to strong demand for dollars from foreign investors. REUTERS/Akintunde Akinleye (NIGERIA – Tags: BUSINESS) – RTR4DUX1

By Adedapo Adesanya

The Naira appreciated against the American Dollar on Wednesday at the Peer-2-Peer (P2P) arm of the foreign exchange (FX) market by N1 to close at N759/$1, in contrast to the N760/$1 it was traded on Tuesday.

However, in the Investors and Exporters (I&E) window, the Nigerian currency depreciated against its United States counterpart by 40 Kobo or 0.09 per cent to settle at N461.90/$1 compared with the previous day’s rate of N461.50/$1, according to data obtained from FMDQ Securities Exchange.

Transactions data for the midweek trading day showed that the value of forex traded in the spot market jumped by 28.6 per cent or $33.63 million to $151.26 million from the $117.63 million reported a day earlier.

Also, in the parallel market, the local currency weakened against the greenback yesterday by N1 to close at N742/$1 compared with Tuesday’s exchange rate of N741/$1.

In the interbank segment, the domestic currency closed flat against the Pound Sterling and the Euro at the midweek session at N549.03/£1 and N485.15/€1, respectively.

Meanwhile, the cryptocurrency market was bullish on Wednesday as prices of most tokens monitored by Business Post were in the green territory, with Ripple (XRP) improving by 5.9 per cent to trade at $0.3744.

Binance Coin (BNB) appreciated by 1.2 per cent to settle at $279.39, Litecoin (LTC) increased its value by 1.1 per cent to $82.95, Bitcoin (BTC) rose by 0.5 per cent to $17,530.76, Dogecoin (DOGE) went northwards by 0.2 per cent to sell at $0.0773, and Ethereum (ETH) saw a 0.07 per cent appreciation to trade at $1,341.30.

But the value of Cardano (ADA) went down by 2.3 per cent to trade at $0.3167, while the US Dollar Tether (USDT) and Binance USD (BUSD) closed flat at $1.00 each.

Share
Related Stories
Image
29-February-2024

EnjoyCorp Buys Heineken’s Stake in Champion Breweries

By Adedapo Adesanya EnjoyCorp Limited, a holding company established for food, beverage and hospitality brands, has reached an agreement with Heineken B.V., to acquire its entire shareholding in The Raysun Nigeria Company Limited. The firm holds an 86.5 per cent stake in Champion Breweries Plc, a leading regional brewer listed on the Nigerian Exchange (NGX) Limited. The proposed transaction is subject to obtaining requisite regulatory approvals and the parties expect to close the transaction in the second quarter of this year (Q2 2024). EnjoyCorp intends to keep Champion Breweries Plc listed on the NGX. Heineken will continue to support Champion

Image
29-February-2024

The Nigerian Government’s Crypto Crackdown and the Role of USDT

In the last couple of weeks, Nigeria has found itself at the centre of a currency crisis, with the value of the Naira drastically falling against the US Dollar. Amidst this economic turmoil, recall that at the beginning of the year, the value of the Naira to Dollar was between N900 and N1,100 to $1, however, the Naira now goes for N1,600 to $1. This issue has raised a lot of concerns for the Nigerian government. In a bid to safeguard the Naira and tidy up the multiple systems of various exchange rates, the government has restricted access to some

Image
01-March-2024

Business Confidence in Nigeria Falls in February Amid Rise in Input Costs

By Modupe Gbadeyanka Business conditions in Nigeria slowed to 51.0 in February 2024 from 54.5 in January 2024, as price pressures intensified in the private sector at an unprecedented pace in over a decade of data collection, the Stanbic IBTC Bank Purchasing Managers’ Index (PMI) has revealed. A statement from the lender disclosed that the improvement in business conditions was the weakest since the recovery in the private sector began last December. It stated that input costs surged higher in the period under consideration as a result of higher fuel prices and exchange rate weakness, which drove up material costs.

Image
29-February-2024

Navigating the Complex World of Investing: What Novices Need to Know

Have you finally decided to take the leap into the exciting arena of investing? Not only is this an excellent way to secure a lucrative nest egg for the future, but many have begun to use these opportunities as a springboard for their businesses. However, appreciating the intricacies of online trading is no easy task. A great deal of preparation will be required and mistakes can occur on occasion. This is why knowing where to begin is one of the best ways to establish strong foundations. Let us therefore cut through a fair amount of “fluff” and examine a handful

More Stories
Image
26-April-2023

Nigeria to Begin Malaria Vaccine Trials in Six Weeks—NAFDAC DG

By Adedapo Adesanya The Director General of the National Agency For Food and Drug Administration and Control (NAFDAC), Mrs Mojisola Adeyeye, has said the approval process for the R21/Matrix-M malaria vaccine requires more clinical trials before its full use. She made this disclosure on Wednesday morning while speaking on Channels Television. In her words, “The clinical trial will begin within the next six weeks. The RTS,S did not include Nigeria, because from the beginning the effectiveness was 30 per cent, so we did not agree to join the clinical trial.” Mrs Adeyeye noted that development in a country’s governance is

Image
16-November-2023

NGX ASI Hits New High of 71,014.34 points After Oando Gains 10%

By Dipo Olowookere The Nigerian Exchange (NGX) Limited further appreciated by 0.25 per cent on Wednesday despite the National Bureau of Statistics (NBS) saying inflation for October 2023 rose by 27.33 per cent. The stats office released the inflation figures for the month yesterday but this did not deter stock investors, who maintained their positive sentiment and continued to cherry-pick equities with sound fundamentals. At the close of transactions, the All-Share Index (ASI) reached a new high of 71,014.34 points after adding 173.62 points to the previous day’s 70,840.72 points. In the same vein, the market capitalisation of Customs Street

Image
25-November-2018

Rivers Probes Cause of Collapsed Building in Port Harcourt

By Dipo Olowookere The government of Rivers State led by Mr Nyesom Wike has promised to unravel the main cause of the building that caved in last Friday in Port Harcourt, the state capital. A 7-storey building under construction collapsed last Friday on Woji Road, New GRA, Port Harcourt, with about 20 persons already rescued alive. Chief of Staff to the Governor, Mr Chukwuemeka Woke, during an inspection of the property, said efforts would be made to rescue all persons trapped under the rubble. He said that government has mobilised the Fire Service, Civil Defence, Police, Ministry of Works and

Image
25-March-2020

Tumbling of Nigerian Stocks Worries Senate

By Modupe Gbadeyanka Chairman Senate Committee on Capital Market, Mr Ibikunle Amosun, has expressed worry over the tumbling of local stocks at the market. Speaking last week during a visit to the Lagos Zonal office of the Securities and Exchange Commission (SEC), the former Governor of Ogun State said he hopes things get better very soon. Prices of stocks at the Nigerian Stock Exchange (NSE) have been falling due to the coronavirus pandemic ravaging the globe at the moment, infecting over 400,000 persons and causing several deaths. But Mr Amosun said the capital market can come to the rescue and

Image
25-March-2019

Secure Electronic Technology Records N152m Loss in 2018

By Modupe Gbadeyanka The fortune of Lagos-based lottery/gaming company, Secure Electronic Technology (SET) Plc has continued to dwindle and urgent efforts are needed to salvage the situation before things get out of hand. Last week, the company released its financial scorecard for the 2018 financial year and the numbers were not encouraging. Apart from the fact that the revenue generated by the firm headed by Mr Odunlami Kola-Daisi declined, the company posted a loss before tax as well as a loss after tax. A brief analysis of the results by Business Post showed that revenue dropped to N4.3 billion in

Image
13-September-2023

ANLCA President Warns Clearing Agents Without Operating Licence

By Bon Peters The National President Association of Nigerian Licensed Customs Agents (ANLCA), Mr Emenike Nwokeoji, has said that the era of operating without license as a clearing Agent will soon be a thing of the past. Mr Nwokeoji said this when he received members of ANLCA Eastern Zone in Port Harcourt, Rivers State, on Monday after his victory at the group’s election recently. He said “operating without a license is limiting yourselves,” insisting that going forward, the licenses would begin to count for effective operation as a licensed customs agent. “Don’t operate without any license. Get your license to

Image
21-February-2019

SEC Seals Growing Circle Limited for Illegal Transactions

By Modupe Gbadeyanka The premises of Growing Circle Limited in Lagos have been sealed up by the Securities and Exchange Commission (SEC). The firm was shut down by the apex regulatory agency in the capital market for allegedly carrying out illegal activities. SEC, which confirmed the sealing of Growing Circle Limited, disclosed that the company was operating in the nation’s capital market without authorisation. The agency said Growing Circle Limited did not obtain an operating licence for its fund management services offered to clients. “They do not have registration with the SEC and the commission has powers according to Section

Image
20-December-2021

Market Value of NASD Exchange Grows N6.41bn in One Week

By Adedapo Adesanya The total value of stocks on the NASD Over-the-Counter (OTC) Securities Exchange expanded by N6.41 billion in the 50th trading session of 2021. According to the weekly NASD market review and analysis observed by Business Post, the market capitalisation of the platform jumped to N611.29 billion from N604.88 billion in Week 49. This was boosted by the bullish performances of two securities, which also increased the NASD Security Index by 1.1 per cent or 7.75 points to 739.9 points from the preceding week’s 732.15 points. Friesland Campina Wamco Nigeria Plc was the highest price gainer in the

Ad
Ad
Recent Stories
Image
01-March-2024

Nigeria Wants Share in $350bn Global Outsourcing Market

By Aduragbemi Omiyale The global outsourcing market is estimated to be worth about $350 billion and Nigeria is looking to take a slice of it to address the rising unemployment rate in the country. Before 2023, the National Bureau of Statistics (NBS) put the unemployment rate at about 33 per cent, but in its revised edition, the agency said the rate grew to 5.0 per cent in the third quarter of last year. The outsourcing market is becoming the new oil market and Nigeria, which prides itself as the largest economy in Africa because of its population size of over

Image
01-March-2024

Lokpobiri Charges New NCDMB Council on Growth of Nigeria’s Energy Sector

By Adedapo Adesanya  The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has charged the newly inaugurated fourth Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB) to continue advancing the country’s oil and gas industry. The NCDMB Governing Council is set up under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and draws membership from representatives of select institutions connected with the energy sector. The fourth NCDMB Governing Council would be chaired by Mr Lokpobiri, while the Executive Secretary of NCDMB, Mr Felix Omatsola Ogbe, would serve as the Secretary. Others are the

Image
01-March-2024

How to Protect Your Crypto From Scams, Hacks

In 2023, it is estimated around $2 billion was lost by investors to scams, rug pulls and hacks. Although the technology is becoming more secure and stable and many users are more aware of the tricks used to steal assets, there are still ways for thieves to extract your crypto if you aren’t careful.   Experts at Smart Betting Guide have provided a guide on the best ways to keep your crypto safe in 2024.  1. Do not store your password and seed phrase on the Cloud   For many people, the best and most convenient way to access crypto is through

Image
01-March-2024

FX Crisis: Nigeria May Slam $10bn Fine on Binance

By Adedapo Adesanya The Nigerian government may be considering a $10 billion fine on Binance, a crypto exchange platform, amid a crackdown on crypto platforms in desperate moves to restore the nation’s battered foreign exchange (FX) market. This information was disclosed by Mr Bayo Onanuga, who is the Special Adviser on Information and Strategy to President Bola Tinubu, in an interview with the British Broadcasting Corporation (BBC) on Friday morning. According to the President’s aide, this was necessary as the Nigerian government believes Binance profited substantially from its “illegal transactions” in the country while the nation suffered huge losses. Mr

Image
01-March-2024

Business Confidence in Nigeria Falls in February Amid Rise in Input Costs

By Modupe Gbadeyanka Business conditions in Nigeria slowed to 51.0 in February 2024 from 54.5 in January 2024, as price pressures intensified in the private sector at an unprecedented pace in over a decade of data collection, the Stanbic IBTC Bank Purchasing Managers’ Index (PMI) has revealed. A statement from the lender disclosed that the improvement in business conditions was the weakest since the recovery in the private sector began last December. It stated that input costs surged higher in the period under consideration as a result of higher fuel prices and exchange rate weakness, which drove up material costs.

Image
01-March-2024

Harvard Business School Introduces Tony Elumelu Foundation Case Study

By Modupe Gbadeyanka A case study to spotlight the role of celebrated African businessman, Mr Tony Elumelu, in transforming the development agenda on the continent through his Tony Elumelu Foundation (TEF) has been introduced by the Harvard Business School. The case study, launched on Thursday, February 29, 2024, will critically look into how the former banker is catalysing entrepreneurship in Africa through his Africapitalism approach. At its unveiling before a class of graduate students at Harvard Business School, Mr Elumelu said, “TEF is creating economic hope and opportunity for African entrepreneurs. We know that entrepreneurship is the solution to youth

Image
01-March-2024

Unlisted Securities Remain in Negative Territory by 1.36%

By Adedapo Adesanya Correction at the NASD Over-the-Counter (OTC) Securities Exchange continued as it recorded a 1.36 per cent loss on Thursday, February 29. The bourse lost N21.34 million of its value during the trading session to close at N1.542 trillion compared with the preceding day’s N1.564 trillion and the NASD Unlisted Security Index (NSI) went down by 15.74 points to end the day at 1,138.05 points versus Wednesday’s 1,153.79 points. Yesterday’s decline was influenced by Aradel Holdings Plc, which further suffered further profit-taking, causing its price to drop N98.25 to close at N2,401.75 per share versus the preceding session’s

Image
01-March-2024

Naira Firms to N1,595/$1 at NAFEX, Weakens to N1,500/$1 at Black Market

By Adedapo Adesanya The Naira ended a tumultuous February as it recorded a price appreciation f 0.09 per cent or N14.40 against the US Dollar on Thursday, February 29, in the Nigerian Autonomous Foreign Exchange Market (NAFEM). Data obtained from the FMDQ Securities Exchange showed that the value of the local currency closed at N1,595.11/$1 during the session compared with the preceding day’s N1,609.51/$1. Also, the Nigerian currency improved its value against the Pound Sterling in the official market yesterday by N20.34 to close at N2,046.19/£1 compared with the preceding session’s N2,066.53/£1 and strengthened against the Euro by N16.5 to

Image
01-March-2024

Oil Down as US Inflation Signals Weak Crude Demand

By Adedapo Adesanya  Oil was down on Thursday as inflation data in the United States implied a softening of the world’s biggest economy that could weaken crude demand. Brent futures went down by 6 cents to $83.62 a barrel and the US West Texas Intermediate (WTI) futures depreciated by 28 cents to $78.26 a barrel. The US Federal Reserve’s preferred inflation gauge, the US Personal Consumption Expenditures (PCE) index, showed January inflation in line with economists’ expectations. The index rose 0.3 per cent last month, the Commerce Department’s Bureau of Economic Analysis said. Data for December was revised lower to

Image
01-March-2024

Local Stock Market Rebounds, Closes Last Day of February 0.68% Higher

By Dipo Olowookere The last trading session of February 2024 at the Nigerian Exchange (NGX) Limited ended on a positive note as it rebounded by 0.68 per cent after the interest rate hike scare. The growth posted on Thursday was triggered by bargain-hunting in financial stocks, especially those selling at cheaper prices after the sell-offs in the past few sessions. However, profit-taking persisted in the other sectors of the bourse, with the energy, and consumer goods indices closing lower by 0.33 per cent, and 0.18 per cent, respectively. Business Post reports that the banking space rose by 6.14 per cent,