Naira Gains N1 at Official Window as TerraUSD Continues Gradual Recovery

By Adedapo Adesanya

The Naira strengthened against the US Dollar by N1 or 0.24 per cent at the Investors and Exporters (I&E) window of the foreign exchange (FX) market on Wednesday, May 25.

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According to data from the FMDQ Securities Exchange, the exchange rate of the Naira to the Dollar was N418.00/$1 as against the N418.00/$1 it was sold in the previous session.

This happened despite a spike in the demand for forex at the official exchange window by 24.4 per cent or $21.27 million to $108.33 million from the previous day’s turnover of $87.06 million.

Also, the value of the local currency to the greenback appreciated yesterday at the peer-to-peer (P2P) market segment by N1 or 0.16 per cent to N616/$1 from the preceding session’s N617/$1.

In the same vein, the Nigerian currency put up a better performance against the Pound Sterling at the interbank segment, where the Central Bank of Nigeria (CBN) sells the greenback to commercial banks. The domestic currency gained 75 kobo during the session to quote at N519.02/£1 compared with Tuesday’s closing rate of N519.77/£1 and against the Euro, it appreciated by N2.70 gain to N442.95/€1 from N445.65/€1.

Meanwhile, the crypto market was in bearish territory yesterday on the back of the continued worry about the global market, with Solana (SOL) going down by 3.9 per cent to trade at $47.84, followed by Litecoin (LTC) which lost 3.6 per cent to close at $68.17.

Binance Coin (BNB) recorded a 3.4 per cent depreciation to trade at $332.93, Ethereum (ETH) declined by 3.2 per cent to quote at $1,942.54, Cardano (ADA) depreciated by 2.5 per cent to finish at $0.5134, Dogecoin (DOGE) went down 1.4 per cent to sell at $0.0827, Bitcoin (BTC) lost 1.1 per cent to trade at $29,775.96, Ripple (XRP) depreciated by 0.9 per cent to sell at $0.4075, while the US Dollar Tether (USDT) retreated by 0.01 per cent to $0.999.

However, TerraUSD (UST), which has seen turmoil in the last three weeks, continued its recovery ahead of a planned relaunch soon and yesterday, it chalked up 47.6 per cent to settle at $0.1027.