Naira weakens to four-month low against Dollar in NAFEM despite CBN’s moves to stabilise market

By Adedapo Adesanya The Naira weakened to a four-month low against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market

The Naira fell to a four-month low against the Dollar in the Nigerian Autonomous Foreign Exchange Market on Friday, closing at N1,609.29/$1 compared with the previous day’s rate of N1,603.80/$1, despite recent efforts by the Central Bank of Nigeria to stabilise the market.

According to data from FMDQ Securities Exchange, the daily FX supply, as measured by secondary data, increased by $37.54 million or 28.6 per cent to $168.63 million from $131.09 million.

The CBN sold another Dollar to 29 authorised dealers, with the sales, which totalled $148 million, conducted on July 22 and 23, 2024, aimed at providing much-needed stability in the FX market. It was sold between N1,470.00$1 and N1,510.00/$1.

It also stated that it would continue to provide liquidity support to various segments of the official markets over the next couple of weeks to bolster the market.

Meanwhile, in the official market yesterday, the domestic currency gained 82 Kobo against the Pound Sterling, selling at N2,061.60/£1 compared with the previous session’s N2,062.42/£1.

However, the Nigerian currency took a different direction against the Euro after losing N4.13 to sell at N1,740.81/€1 compared with the previous day’s value of N1,736.68/€1.

In the parallel market, the Naira closed flat against the US Dollar yesterday, remaining unchanged at N1,595/$1.

The cryptocurrency market was bullish amid increased transactional activity and booming expectations of a possible exchange-traded fund for Solana, which went up by 4.3 per cent to sell at $184.86.

Dogecoin (DOGE) jumped 3.7 per cent to $0.1343, Bitcoin (BTC) appreciated by 1.5 per cent to $68,094.50, Binance Coin (BNB) rose by 1.3 per cent to close at $586.74, Ethereum (ETH) increased by 0.2 per cent to $3,268.47, and Cardano (ADA) grew by 0.1 per cent to $0.4169.

On the flip side, Ripple (XRP) recorded a 1.0 per cent depreciation to settle at $0.5992, and Litecoin (LTC) went down by 0.3 per cent to $71.38, while the US Dollar Tether and the US Dollar Coin traded flat at $1.00 apiece.

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