Naira Appreciates by N3.39 to N1,343/$1 at NAFEM

By Adedapo Adesanya

The value of the Nigerian Naira appreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, August 26, by N3.39 or 0.25 per cent to quote at N1,343.59/$1, in contrast to Monday’s N1,346.98/$1.

The forex exchange (FX) market in Nigeria was closed on Tuesday for a public holiday declared by the federal government.

Also at the official market yesterday, the local currency improved against the Pound Sterling by N9.58 to trade at N1,837.54/£1 compared with the preceding session’s N1,837.54/£1, and against the Euro, it gained N5.43 to trade at N1,566.09/€1 versus N1,571.52/€1.

However, at the GTBank forex counter, the Naira lost N1 against the Dollar during the session to close at N1,356/$1 versus the last trading session’s N1,355/$1, and at the parallel market, the local currency closed flat against the greenback at N1,390/$1.

Nigeria’s interbank FX turnover rose 55 per cent to $235.991 million on Wednesday from $152.592 million, with the number of deals up to 213 from 144.

Meanwhile, Nigeria’s gross external reserves have surpassed $53 billion, supported by sustained accretion from multiple sources, including hydrocarbon sales and remittances.

Updated data from the Central Bank of Nigeria (CBN) showed that the country’s gross external reserves rose by $280 million to $53.112 billion on Tuesday from $52.832 billion.

The latest increase underscores continued growth in the country’s external liquidity amid higher inflows into the foreign exchange market.

In the cryptocurrency market, Bitcoin (BTC) slipped below $79,000 after briefly topping $80,000, amid rising expectations for an interest-rate increase, with US Federal Reserve Chairman, Mr Kevin Warsh, set to speak at Jackson Hole on Friday. Its value dipped 0.3 per cent to $78,726.82.

The US central bank chair’s speech is where policy shifts have historically been signalled before they arrive, which is why traders treat it as a rate event in itself.

Further, Ripple (XRP) lost 2.2 per cent to sell at $1.40, TRON (TRX) declined by 1.1 per cent to $0.3344, and Cardano (ADA) depreciated by 0.5 per cent to $0.2274.

But Solana (SOL) grew by 4.7 per cent to $101.15, Binance Coin (BNB) soared by 1.2 per cent to $704.31, Ethereum (ETH) jumped by 1.1 per cent to $2,487.24, and Dogecoin (DOGE) advanced by 0.5 per cent to $0.0869, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.