Adedapo Adesanya
By Adedapo Adesanya
The Naira appreciated against the US Dollar by 3.6 per cent or N29.30 in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, November 1, despite a continued liquidity crisis.
Data showed that the exchange rate of the local currency in the official market closed at N786.02/$1 compared with the preceding day’s N815.32/$1.
Business Post reports that the supply of forex into the spot market improved during the midweek session by 41.8 per cent or $31.25 million, as the FX trades stood at $105.98 million versus the $74.73 million achieved a day earlier, according to data from the FMDQ Securities Exchange.
Last week, the government said it was expecting to attract $10 billion of inflows in the coming weeks to help ease liquidity constraints and clear a backlog of arrears of matured forward contracts weighing on the currency.
Also, in the Peer-to-Peer (P2P) segment of the FX market, the value of the Nigerian currency improved against the greenback yesterday by N8 to sell at N1,133/$1 compared with the preceding day’s N1,141/$1.
Similarly, in the parallel market, the domestic currency appreciated against the American currency yesterday by N10 to quote at N1,160/$1 compared with Tuesday’s exchange rate of N1,170/$1.
In the official market, the Naira gained N115.14 against British Pound Sterling to close at N989/£1 versus the previous day’s N1,104.56/£1 and against the Euro, it improved by N105.01 to settle at N860.24/€1, in contrast to the previous session’s N965.25/€1.
Meanwhile, the digital currency market turned green on Wednesday as the US Federal Reserve’s Federal Open Market Committee (FOMC) left its benchmark fed funds rate range steady at 5.25 per cent – 5.50 per cent.
Bitcoin (BTC) rose by 2.4 per cent to sell at $34,453.83, Ethereum (ETH) grew by 1.9 per cent to $1,846.71, Solana (SOL) increased by 8.4 per cent to $41.36, Cardano (ADA) jumped by 5.1 per cent to trade at $0.3072, and Ripple (XRP) soared by 1.8 per cent to $0.6079.
Further, Litecoin (LTC) went up by 1.0 per cent to trade at $69.85, Dogecoin (DOGE) also expanded by 1.0 per cent to $0.0687, and Binance Coin (BNB) moved up by 0.6 per cent to $227.72, while the US Tether (USDT) and Binance USD (BUSD) closed flat at $1.00 each.
