Naira Trades N1,460/$1 at Official Market as FX Demand Pressure Cools

By Adedapo Adesanya

It was a good day for the Nigerian Naira in the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the foreign exchange (FX) market on Thursday, October 23, as its value improved further by N2.95 or 0.2 per cent against the greenback to sell for N1,460.49/$1 compared with the previous day’s N1,463.44/$1.

Equally, the domestic currency extended its price appreciation against the Pound Sterling in the same market window yesterday by N3.05 to trade at N1,949.03/£1 versus the preceding session’s rate of N1,952.08/£1, and gained N1.51 against the Euro to close at N1,695.49/€1, in contrast to Wednesday’s closing price of N1,697.00/€1.

Th exchange rate of the Naira to the US Dollar in the parallel market window on Thursday remained N1,490/$1.

FX pressure continued to ease on the local currency, buoyed by a drop in speculative activities as the impact of the reforms of the Central Bank of Nigeria (CBN) continued to drive positive sentiments and confidence across markets. This is complimented by injection of liquidity into the market and rising compliance with regulations.

Also, the local FX market continues to be supported by improved market liquidity from local participants, oil revenues, and offshore portfolio inflows.

However, analysts say pressure remains on the local currency as foreign investors sell local assets amid global risk aversion and limited supply of the greenback.

A look into the cryptocurrency market during the session indicated that there was renewed optimism after the President Donald Trump pardoned the founder of cryptoexchange, Binance, Mr Changpeng Zhao, who was convicted of fraud last year. This act spotlights institutional backing for the digital assets market.

Many traders see the pardon as a signal that Mr Zhao, one of the most influential figures in the crypto space, could soon make a comeback and continue shaping global crypto markets.

Solana (SOL) grew by 3.6 per cent to $193.18, Binance Coin (BNB) appreciated by 2.8 per cent to $1,136.04, Ethereum (ETH) expanded by 2.7 per cent to $3,980.67, Litecoin (LTC) jumped by 2.5 per cent to $95.96, and Cardano (ADA) increased by 2.2 per cent to $0.6528.

Further, Dogecoin (DOGE) rose by 2.2 per cent to $0.1980, Bitcoin (BTC) soared by 1. per cent to $108,920.73, and Ripple (XRP) gained 1.2 per cent to close at $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.