Naira Gains 46 Kobo to Trade N410.67/$1 on Spot Market

By Adedapo Adesanya

The Naira appreciated against the US Dollar on Tuesday by 46 kobo or 0.11 per cent on the spot market, closing at N410.67/$1 compared with the previous day’s N411.13/$1.

The on the spot market is the channel created by the Central Bank of Nigeria (CBN) for heavy foreign exchange (FX) traders called the Investors and Exporters (I&E) segment.

During the session, Business Post observed that the value of transactions jumped by 31.3 per cent or $30.57 million to $128.11 million from the previous day’s turnover of $97.54 million.

But despite the increase in the day’s turnover, the local currency performed stronger than the greenback and this was due to the sufficient supply of forex to traders to meet the demands of customers.

This was reflected at the parallel side of the forex market yesterday as normalcy returned, with the domestic currency trading flat against the American Dollar at N532/$1.

However, the Naira lost N4 against the Pound Sterling to sell at N727/£1 compared with N723/£1 of the preceding session and depreciated against the Euro by N1 to close at N626/€1 in contrast to the prior session’s N625/€1.

At the CBN interbank window, the value of the indigenous currency slightly declined by one kobo to settle at N410.42/$1 in contrast to N411.41/$1 it closed on Monday.

Meanwhile, Bitcoin (BTC) plunged more than 10 per cent on the day El Salvador adopted the largest cryptocurrency by market cap as legal tender, becoming the first country to do so.

The digital currency, which had traded higher than $52,900 globally, snagged by 10.1 per cent to close at N24,933,192.46.

The ripple effect was felt in other coins with Tron (TRX) losing 22.7 per cent to sell for N43.15. Litecoin (LTC) went down by 16.4 per cent to trade at N97,073.10, Ripple (XRP) crashed by 15.8 per cent to trade at N617.00, Dash (DASH) declined by 14.9 per cent to trade at N115,733.67, and Ethereum (ETH) recorded a 4.8 per cent depreciation to sell at N1,941,999.00.

However, the US Dollar Tether (USDT) managed to rise by 0.4 per cent to sell for N532.16.