Connect with us

Economy

Naira Crashes to N608/$1 at P2P as Bitcoin, Others Fall

Published

on

El Salvador Adopts Bitcoin

By Adedapo Adesanya

The Naira further depreciated against the United States Dollar at the Peer-to-Peer (P2P) segment of the foreign exchange (FX) market on Wednesday by 0.66 per cent or N4 amid demand for stablecoins for the purchase of cryptos, which are witnessing distress at the moment.

Analysis by Business Post indicated that the Naira was exchanged with the American currency at the market window yesterday on the average at N608/$1 compared with the previous day’s value of N604/$1.

The rise in inflation in the US is already affecting the cryptocurrency market. The US Consumer Price Index was up 8.3 per cent in the 12 months ended in April, the Bureau of Labor Statistics reported Wednesday, slightly higher than had predicted. This means prices still increased, but at a slower pace than in previous months, especially in March at 8.5 per cent.

This triggered a heavy crash in an already volatile market with all the 10 benchmarked tokens closing lower.

Bitcoin (BTC) traded below $30,000 with an 8.9 per cent loss to settle at $28,458.41, Solana (SOL) hurtled by 31.1 per cent to $45.81, Cardano (ADA) crashed by 26.8 per cent to sell at $0.4607, Dogecoin (DOGE) fell by 26.7 per cent to $0.0802, while Ripple (XRP) recorded a 25.5 per cent slide to trade at $0.3843.

In addition, Litecoin (LTC) dropped 20.9 per cent to trade at $63.05, Binance Coin (BNB) recorded a 19.7 per cent fall to quote at $255.69, TerraUSD (UST) declined by 16.3 per cent to sell at $0.6911, Ethereum (ETH) went down by 15.5 per cent to $1,995.11, while US Dollar Tether (USDT) drowned by 0.5 per cent to settle at $0.9948.

Meanwhile, at the Investors and Exporters (I&E) window of the forex market at the midweek session, the local currency depreciated against the greenback by 0.12 per cent or 50 kobo to trade at N418.75/$1 compared with the previous day’s rate of N418.25/$1.

This happened amid a decline in the FX turnover for the day by 50.6 per cent or $118.76 million to $115.78 million from the $234.54 million reported a day earlier.

At the spot market, the domestic currency appreciated by 33 kobo against the Pound Sterling to close at N514.42/£1 compared to the previously traded rate of N514.09/£1 and against the Euro, it depreciated by 21 kobo to close at N438.91/€1 in contrast to Tuesday’s value of N438.70/€1.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Continue Reading
Click to comment

Leave a Reply

Economy

JUST IN: CBN Raises Benchmark Interest Rate to 13%

Published

on

killing interest rate

By Dipo Olowookere

For the first time in two years, the Monetary Policy Rate (MPR) has been raised by the Central Bank of Nigeria (CBN) to 13.0 per cent from 11.5 per cent.

Mr Godwin Emefiele, the Governor of the CBN, who announced this development on Tuesday in Abuja, explained that the decision to increase the benchmark interest rate was taken at the Monetary Policy Committee (MPC) meeting held yesterday and today.

While addressing financial reporters this afternoon, Mr Emefiele said members of the committee were unanimous with the decision to hike the rates as it was the best thing to do after holding them for about two years.

However, the other parameters were left unchanged by members at the gathering as the Asymmetric corridor remained around the MPR at +100/-700bps, the Cash Reserve Ratio (CRR) at 27.5 per cent and the Liquidity Ratio (LR) at 30.0 per cent.

Continue Reading

Economy

Nigeria’s GDP Grows by 3.11% in Q1, What Next?

Published

on

GDP

By Lukman Otunuga

There are two ways one could interpret Nigeria’s latest Gross Domestic Product (GDP) figure of 3.11% in Q1 of 2022.

The optimists will say the country’s economy grew for the sixth consecutive quarter in Q1 while pessimists may highlight how economic growth slowed for the third consecutive quarter.

Either way, Nigeria’s economy continues to display resilience against external and domestic risks. With the improvement in the non-oil sector driving growth, this may brighten the growth outlook. But could these be signs of Nigeria breaking away from the chains of oil reliance to derive growth from sustainable sources? It may be too early to come to any meaningful conclusion. However, the report is encouraging and illustrates progress made by the country in reclaiming stability post-Covid-19.

With economic conditions somewhat improving, the Central Bank of Nigeria (CBN) is unlikely to raise interest rates this week. Given how Africa’s largest economy has been able to maintain growth in the past six quarters on the back of loose monetary policies by the CBN, a rate hike could disrupt Nigeria’s economic recovery.

As the global war against inflation rages on, central banks are stepping up.

However, the CBN is likely to remain on the sidelines for now. Nevertheless, inflation is still a cause for concern with consumer prices accelerating for the third straight month to 16.82% in April 2022.

With the general elections around the corner, pre-election spending could translate to rising price pressures. On top of this, the widening policy divergence between the Federal Reserve and the CBN could punish the Naira.

It’s worth keeping in mind that the dollar remains heavily supported by aggressive Fed rate hike bets and is likely to remain strong for the rest of 2022. A powerful dollar is bad news for emerging market currencies including the Naira which continues to depreciate in both the official and unofficial markets.

Lukman Otunuga is the Senior Research Analyst at FXTM

Continue Reading

Economy

NGX All Share Index Weakens Further by 0.13%

Published

on

All-Share Index

By Dipo Olowookere

The bearish sentiment on the floor of the Nigerian Exchange (NGX) Limited continued on Monday as the bourse further depreciated by 0.13 per cent.

Sustained profit-taking especially in the industrial goods sector contributed to the decline suffered during the session as the All Share Index (ASI) slumped by 68.45 points to close at 52,911.51 points compared with the previous session’s 52,979.96 points.

As for the market capitalisation, it depreciated by N37 billion amid sell-offs in 24 stocks to settle at N28.525 trillion as against last Friday’s closing value of N28.562 trillion.

On the first trading day of this week, the insurance sector depleted by 2.32 per cent, the industrial goods sector fell by 0.09 per cent, while the energy, banking and consumer goods counters increased by 0.28 per cent, 0.10 per cent and 0.05 per cent respectively.

Presco led the losers’ chart yesterday with a price decline of 10.00 per cent to trade at N180.00, Global Spectrum Energy Services lost 9.97 per cent to finish at N3.07, Neimeth fell by 9.66 per cent to N1.59, UAC Nigeria depreciated by 8.33 per cent to N13.20, while NEM Insurance retreated by 7.74 per cent to N4.05.

The gainers’ log had 22 members on Monday, with Conoil leading after its value improved by 9.95 per cent to N34.25. MRS Oil gained 9.93 per cent to quote at N14.95, McNichols appreciated by 9.86 per cent to N2.34, Academy Press increased its price by 9.76 per cent to N1.35, while NPF Microfinance Bank expanded by 8.02 per cent to N2.02.

On the activity chart, a total of 263.3 million stocks worth N3.6 billion exchanged hands in 4,856 deals during the session compared with 436.6 million stocks worth N3.2 billion bought and sold in 4,716 deals in the preceding session. This implied that the volume of trades depreciated by 39.68 per cent, while the value of trades and the number of deals increased by 10.15 per cent and 2.97 per cent respectively.

Jaiz Bank closed the day as the most active stock with the sale of 114.0 million units valued at N101.8 million, GTCO transacted 12.9 million shares for N302.8 million, Transcorp exchanged 12.8 million stocks worth N16.7 million, Access Holdings traded 11.7 million equities valued at N115.7 million, while Zenith Bank sold 8.6 million shares for N207.0 million.

Continue Reading

Latest News on Business Post

Like Our Facebook Page

%d bloggers like this: