Naira Gains N1.70 to Trade at N1,326/$ at NAFEM

By Adedapo Adesanya

The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, September 11, by N1.70 or 0.13 per cent to N1,326.52/$1 from N1,328.22/$1.

It also improved its value against the Pound Sterling in the official market by N5.70 to close at N1,792.52/£1 compared with the previous day’s N1,798.22/£1, and gained N13.75 against the Euro to close at N1,540.22/€1 versus Thursday’s N1,540.99/€1.

Similarly, the Naira firmed up against the greenback in the black market yesterday by N5 to close at N1,370/$1 compared with the preceding session’s N1,375/$1, and at the GTBank FX desk, it appreciated by N10 to sell for N1,330/$1, in contrast to the previous day’s N1,340/$1.

The Nigerian Naira continues to strengthen in the forex market amid stronger reserves position, improved Dollar liquidity and sustained FX inflows. Nigeria’s gross external reserves edged higher to $54.283 billion in the week.

There are also indications that the positive outcome is coming as high seasonal FX demand nears, and global oil-market conditions continue to shape Nigeria’s external earnings.

Interbank FX turnover fell sharply on the day by 58.3 per cent to $148.85 million from $357.29 million, with the number trades down to to 107 from 234.

As for the digital currency market, benchmarked tokens were positive after US inflation data in August came in broadly in line with estimates, but the core rate rose faster than expected, putting a rate hike by the US Federal Reserve next week firmly on the table.

The Consumer Price Index rose 0.4 per cent in August.

Recently, the US Fed Chairman Kevin Warsh hinted in his Jackson Hole speech that the central bank might have to act if inflation didn’t soon show signs of slowing down.

Binance Coin (BNB) soared by 4.5 per cent to $733.66, Ethereum (ETH) grew by 2.3 per cent to $2,472.21, Solana (SOL) jumped by 1.8 per cent to $101.61, Ripple (XRP) increased by 0.9 per cent to $1.36, Dogecoin (DOGE) also added 0.9 per cent to sell at $0.0847, TRON (TRX) surged by 0.3 per cent to $0.3393, Cardano (ADA) expanded by 0.2 per cent to $0.2088, and Bitcoin (BTC) closed at $77,243.21, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.