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Naira Gains 1.58 Percent to N416 at Official FX Market, Bitcoin, Other Cryptocurrencies Plunge

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Naira Dollar Exchange Rate - Investors King

The Nigerian Naira gained 1.58 percent or N7.56 against the United States Dollar at the official forex market on Wednesday.

The local currency opened the day at N423.56 to a US Dollar before improving in value to N416 against the greenback. At the official forex window managed by the FMDQ Group, investors traded $114.95 million on Wednesday.

The improvement in Naira value was after the market had digested the Central Bank of Nigeria’s currency adjustment. The central bank had adjusted the Naira to Dollar exchange rate by N2 from N411 to N413 on Friday, leading to devaluation outcry across Africa’s largest economy.

On Friday, the Naira plunged to as low as N435 against the United States Dollar at the official forex trading market and N575 at the unregulated parallel market, popularly known as the black market, before moderating to N416.

Meanwhile, bitcoin and other cryptocurrencies plunged across the board. Bitcoin depreciated by 7.16 percent to $43,058 per coin in the last 24 hours. The decline does not stop there as the second most capitalised digital asset, Eth dipped by 9.77 percent to $3,441.

Solana, Ripple (XRP), Luna and Cardano (ADA) lost 11.48 percent, 8.13 percent, 9.5 percent and 8.6 percent, respectively.

The decline was after the US Federal Reserve minutes of December 14 – 15 meeting released on Wednesday revealed that policymakers are planning to raise interest rates as early as March 2022 to curb escalating inflation rate. Generally, hawkish monetary policy is negative for cryptocurrency as it drags on capital inflow into the space and encourages investors to look into more stable assets for higher interest rates.

According to The Wall Street Journal, the “Federal Reserve officials at their meeting last month eyed a faster timetable for raising interest rates this year, potentially as soon as in March, amid greater discomfort with high inflation.

“Minutes of their Dec. 14-15 meeting, released Wednesday, showed officials believed that rising inflation and a very tight labor market could call for lifting short-term rates “sooner or at a faster pace than participants had earlier anticipated.”

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Naira

Naira Depreciates 2.4% Against US Dollar Despite Surge in Market Supply

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The Naira recorded a 2.4 percent depreciation against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday to close at N1,678.87 per Dollar despite a significant surge in supply volume in the official market.

At the previous session on Thursday, the Naira closed down at N1,639.50/$1, indicating a decrease of N39.37 at the approved market.

A turnover of $1.403 billion was on record at the market, according to data from the FMDQ Securities Exchange Limited. This indicated a $1.158 billion or 473.1 percent jump versus the $244.96 million quoted recently.

The surge in supply indicates that the Central Bank of Nigeria (CBN) issued guidelines to banks on implementing the free foreign exchange deposit window which gives banks the liberty to trade with the forex made available by scheme participants.

According to the document released this week titled “Guidelines On Implementation Of The Foreign Currency Disclosure, Deposit, Repatriation, And Investment Scheme, 2024,” the apex banks said commercial, merchant, and non-interest banks may trade with any deposited ITFC (Internationally Tradable Foreign Currencies) not immediately invested by a participant, provided that the funds would be made available to the participant when needed.

In a different trend, the domestic currency witnessed a flat outcome against the British currency and the Euro in the week’s closing session.

On the Pound Sterling, the local currency closed at N2,160.43/£1 and N1,796.61/€1 on the Euro.

In the parallel market, the local currency strengthened against the US Dollar, the Euro, and the Canadian Dollar but weakened against the Pound Sterling.

The Naira gained N12.89 against the American currency to close at N1,708.59 to the US Dollar compared to N1,721.48/$1 it closed on Thursday.

Against the Euro, the Naira quoted at N1,845.11/€1 versus the previous day’s rate of N1,848.28/€1 as it added N3.17 and against the Canadian Dollar, it appreciated by N7.77 to close at N1,224.09 per Canadian Dollar, compared to N1,231.86 per CAD in the recent session.

On the English currency, there was fall of 72 Kobo to wrap the final  session at N2,216.09/£1 from N2,215.37/£1.

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Naira

Naira Rises 2.5% on Dollar at Official Market, Slides at Parallel FX Market

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Naira Exchange Rates - Investors King

The Naira appreciated on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, November 7, as the local currency sold for N1,639.50/$1.

This happened as improved supply boosted the rate as the market faced heavy illiquidity.

At the official market, the domestic currency recorded a 2.51 per cent or N42.15 drop compared to the N1,681.65/$1 it was valued at the previous session on Wednesday.

This occurred as supply rose at the session as turnover published on the FMDQ Group website stood at $244.96 million indicating that the session’s turnover climbed by 24.5 per cent, indicating that there was an increase of 48.18 million compared to $196.78 million which was published the day (Wednesday).

Since the administration of President Bola Tinubu came into power, the Naira has fallen 72 percent. This is largley due to illiquidity in the FX market has led to volatile outcomes for the Naira despite the country recording high fixed-income yields and the local currency getting interventions from the Central Bank of Nigeria (CBN).

Also, the domestic currency witnessed gains against the British currency and the Euro in the week’s penultimate session.

On the Pound Sterling, the local currency made a rise of N8.94 to wrap the session at N2,160.43/£1 from N2,169.37/£1 that it sold at the previous session and against the Euro, the Nigerian currency closed at N1,796.61/€1 versus N1,819.86/€1, indicating an N23.25 appreciation.

In the parallel market, the local currency weakened further against the US Dollar and the Canadian Dollar but made gains against the Pound Sterling and  the Euro.

The Naira lost N5.75 against the greenback to close at N1,721.48 to the US Dollar compared to N1,715.73/$1 it closed on Wednesday.

Against the Canadian Dollar as it depreciated further by 63 Kobo to close at N1,231.86 per Canadian Dollar, compared to the midweek’s N1,231.23 per CAD.

On the English currency, there was rise of N4.42 to wrap the session at N2,215.37/£1 from N2,219.79/£1 and it appreciated N11.81 on the Euro to quote at N1,848.28/€1 versus the previous day’s rate of N1,860.09/€1.

 

 

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Naira Falls Across Multiple FX Windows as Trump Emergence Boost Dollar Value

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Naira Exchange Rates - Investors King

The Naira weakened to N1,681 per Dollar on Wednesday, November 6 in the official foreign exchange market, the Nigerian Autonomous Foreign Exchange Market (NAFEX) as the American Dollar strengthened in the global market following the emergence of Donald Trump as the US president.

The local currency fell by N10.33 or 0.61 percent to close at N1,681.65/$1 compared with Tuesday’s closing rate of N1,671.32/$1.

The daily supply of FX as measured by secondary data from FMDQ Securities Exchange Limited indicated that turnover slumped by $21.99 million or 10.1 percent to $196.78 million from $218.77 million.

The decline in supply comes as the Central Bank of Nigeria (CBN) limited the sale of forex in order to regulate cash sales in the FX market to ensure stability and compliance.

Also, the emergence of Donald Trump as the next US president made the Dollar stronger and weakened a host of other currencies, like the Naira.

The market will be looking forward to Trump’s potential policies and what it would mean for the global economy.

However, the Naira weakened in its value against the Pound Sterling in the official market by N8.74 to sell at N2,169.37/£1 compared with the preceding session’s N2,160.63/£1.

It closed flat against the Euro in the midweek to trade at the rate of N1,819.86/€1.

The local currency also weakened across the Dollar, Pound Sterling, and the Canadian Dollar in the black market.

The Naira lost N7.38 against the greenback to close at N1,715.73 to the US Dollar compared to N1,708.35/$1 it closed on Tuesday.

The Naira lost N3.33 to sell at N2,219.79/£1 compared with the preceding session’s N2,216.46/£1 and against the Canadian Dollar as it depreciated further by N6.61 to close at N1,231.23 per Canadian Dollar, compared to Tuesday’s N1,224.62 per CAD.

However, it followed a different pattern against the Euro as it appreciated N4.48 to quote at N1,860.09/€1 versus the previous day’s rate of N1,864.57/€1 and it extended losses

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