Naira Performs Badly at Currency Market Amid FX Supply Crunch

June 4, 2022
FX Supply

By Adedapo Adesanya

The Naira suffered a loss of 25 kobo or 0.06 per cent against the US Dollar at the Investors and Exporters (I&E) segment of the foreign market (forex) on Friday as Nigeria continues to battle an FX supply crunch.

At the official exchange platform, the Naira was traded at N419.75/$1 in contrast to the N419.50/$1 it was traded on Thursday despite a significant decline in the forex trades.

According to the FMDQ Securities Exchange, the value of transactions at the forex window was $185.85 million in contrast to the $760.2 million recorded a day earlier, implying that the FX trades moderated by 75.6 per cent or $574.35 million.

But at the interbank segment of the currency market, the value of the Naira closed flat against the British Pound Sterling on Friday at N521.94/£1 and against the Euro, it also remained unchanged at it was traded at N444.42/€1.

However, at the Peer-to-Peer (P2P) FX window, the local currency appreciated against the greenback yesterday by N2 or 0.33 per cent to settle at N608/$1 compared with the previous day’s N610/$1.

Meanwhile, a day after closing bullish, the cryptocurrency market was down on Friday as investors try to play safe and minimise their exposure to the asset class.

All the 10 digital coins monitored by Business Post across the various trading platforms depreciated in value yesterday, with TerraClassicUSD (USTC) losing 10.1 per cent to sell at $0.0186, followed by Solana (SOL) with a 9.4 per cent decline to trade at $37.13.

Cardano (ADA) depreciated by 4.9 per cent to $0.5642, Ripple (XRP) went down by 4.1 per cent to $0.3903, Ethereum (ETH) reduced by 3.1 per cent to sell at $1,767.54, Binance Coin (BNB) pointed southwards by 2.9 per cent to quote at $298.30, Litecoin (LTC) cracked by 2.9 per cent to sell at $62.37, Bitcoin (BTC) declined by 2.8 per cent to trade at $29,668.73, Dogecoin (DOGE) slid by 1.2 per cent to $0.0817, while the US Dollar Tether (USDT) lost 0.03 per cent to quote at $0.9991.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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