Naira Declines to N1,494/$1 at Official FX Window

By Adedapo Adesanya

The Naira saw a correction of N10.13 or 0.68 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, September 17, trading at N1,494.75/$1, in contrast to the previous day’s value of N1,484.62/$1.

But the local currency traded flat against the Pound Sterling and the Euro in the midweek session at at N2,026.89/£1 and N1,754.55/€1, respectively.

In the same vein, the Nigerian Naira remained unchanged against the Dollar in the parallel market yesterday at N1,505/$1.

The correction in the official market came despite the Naira remaining in the expected trading range of N1,480 and N1,55o. Market analysts have noted that a combination of stronger demand for the Naira, reduced speculative trading, and improved foreign reserves, will continue to offer leverage to the Nigerian currency.

Also with oil earnings supporting inflows, many market watchers believe the rally has a stronger foundation compared to previous cycles of volatility.

Improved Dollar access from a wide range of sources will also prop up prices. Many fintechs and banks are also stepping up to align with the current market realities.

Business Post reported that Chipper Cash, a remittance company, slashed its rates amid the developments in the market.

As for the cryptocurrency market, things were bullish as the US Federal Reserve cut rates by 25 basis points to 4 per cent late Wednesday. The central bank also hinted rapid easing in the next 12 months.

According to the Federal Reserve funds futures, traders expect rates to drop to 3 per cent from the present 4.25 per cent within the next 12 months.

Binance Coin (BNB) appreciated by 4.3 per cent to $993.81, Dogecoin (DOGE) gained 3.7 per cent to close at $0.2785, Solana (SOL) expanded by 3.2 per cent to $244.04, Cardano (ADA) jumped by 2.7 per cent to $0.9083, Ripple (XRP) grew by 1.6 per cent to $3.06, Litecoin (LTC) improved by 1.0 per cent to $116.32, and Ethereum (ETH) went up by 0.7 per cent to $4,570.01.

However, Bitcoin (BTC) depreciated by 0.1 per cent to $117,081.01, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.