Naira Loses 0.04% Against US Dollar at Official Market

By Adedapo Adesanya

The Naira depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, August 24, by 49 Kobo or 0.04 per cent to close at N1,346.98/$1, in contrast to the previous day’s N1,346.49/$1.

In the same vein, the domestic currency lost 79 Kobo against the Pound Sterling in the official market during the session to settle at N1,837.54/£1 compared with last Friday’s closing price of N1,836.75/£1, but gained N1.59 against the Euro to trade at N1,571.54/€1 versus the preceding session’s N1,573.11/€1.

However, at the black market, the Nigerian currency traded flat against the US Dollar yesterday at N1,390/$1, and also remained unchanged at the GTBank FX desk at N1,355/$1.

Data from the Central Bank of Nigeria (CBN) showed that interbank FX turnover moderated slightly by 4.4 per cent to $152.592 million from $159.732 million, with the number of deals shrinking to 144 from 294.

Analysts expect the trading range to be relatively stable, supported by ongoing refinements in monetary and fiscal policy.

“We expect that the current stability experienced at the FX market will remain in the interim as the Central Bank of Nigeria (CBN) further refines existing policies in line with fiscal steps taken by the FGN to ensure liquidity within the space,” AIICO Capital said in a note.

As for the cryptocurrency market, Bitcoin (BTC) climbed above $80,000, gaining 4.7 per cent to trade at $80,749.63, as the US Treasury’s plan to expand bond buybacks revived the “debasement trade,” which is an investment strategy where people sell traditional fiat currencies, like the US Dollar, and buy scarce assets, to protect their wealth from government debt and money printing.

Traders also await Federal Reserve Chair Kevin Warsh’s Jackson Hole speech and other policy and economic developments. The US central bank chair’s speech is where policy shifts have historically been signalled before they arrive, which is why traders treat it as a rate event in itself.

Solana (SOL) appreciated by 8.3 per cent to $102.01, Cardano (ADA) grew by 3.5 per cent to $0.2274, Ripple (XRP) jumped by 3.1 per cent to $1.52, Binance Coin (BNB) rose by 2.5 per cent to $716.78, Ethereum (ETH) increased by 2.5 per cent to $2,509.38, and Dogecoin (DOGE) soared by 1.1 per cent to $0.0928.

On the flip side, TRON (TRX) declined by 0.1 per cent to $0.3446, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.