Anxiety as Naira Hits N431/$1 at I&E, N688/$1 at P2P, N671 at Black Market

By Adedapo Adesanya

The Naira depreciated by 0.9 per cent or N3.83 against the United States Dollar in the Investors and Exporters (I&E) segment of the foreign exchange market on Tuesday, trading at N431.00/$1 compared with Monday’s value of N427.17/$1.

The value of the domestic currency to its American counterpart depleted yesterday despite the turnover going down by 35.4 per cent or $31.76 million as trades worth $58.03 million were executed compared with the previous day’s $89.79 million.

One possible explanation for this was a decline in the supply of forex to the market, which forced some traders to ration what they had and this consequently put pressure on the Naira.

Also, the local currency depreciated against the Dollar by N17 or 2.5 per cent at the peer-to-peer (P2P) market segment, exchanging at N688/$1 versus the earlier session’s rate of N671/$1.

In addition, in the parallel market, the Nigerian currency lost N6 or 0.90 per cent to trade at N671/$1 compared with the previous session’s value of N665/$1 and in the interbank window, the Naira closed flat against the Pound Sterling and the Euro at N497.44/£1 and N423.39/€1 respectively.

In the cryptocurrency market, there was a sway towards the bears as six of the 10 digital coins monitored by Business Post retreated in their value.

Cardano (ADA) lost 1.7 per cent to trade at $0.4602, Solana (SOL) slid by 1.2 per cent to sell at $35.76, Litecoin (LTC) depreciated by 0.5 per cent to close at $53.19, Ripple (XRP) declined by 0.4 per cent to quote at $0.3314, Bitcoin (BTC) went down by 0.2 per cent to settle at $21,072.25, while Ethereum (ETH) also declined by 0.2 per cent to trade at $1,424.01.

However, TerraUSD (UST) recovered 14.1 per cent to sell for $0.0385, Binance Coin (BNB) recorded a 3.4 per cent appreciation to trade at $251.54, Dogecoin (DOGE) went up 0.4 per cent to sell at $0.0619, while the US Dollar Tether (USDT) closed flat at $1.00.