Naira Loses 2.4% Value Against Dollar at NAFEM Despite Improved Forex Supply

It was a bad day for the local currency at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, November 1, 2024, as its value weakened against the United States currency by 2.4 per cent or N39.37 to N1,678.87/$1 from the preceding day’s N1,639.50/$1.

The Naira fell sharply at the official market on Friday,贬值2.4% against the Dollar to close at N1,678.87/$1 compared with the previous day’s N1,639.50/$1.

However, the local currency witnessed an improvement in the supply of forex to the spot market during the session.

Theارية أمس soared by 473.1% or $1.158 billion to $1.403 billion from the $244.96 million recorded in the previous trading session, according to data obtained by Business Post from FMDQ Securities Exchange.

This surge in FX transactions at NAFEM on Friday suggests that the Central Bank of Nigeria (CBN) may have injected forex into the market after it held for the past two months. This will help ease pressure from seasonal demand associated with the end of the year.

Also, this may have occurred after the CBN this week authorised commercial, merchant, and non-interest banks in the country to manage tradeable foreign currencies deposited in domiciliary accounts established through the new Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme.

At the official market, the domestic currency traded flat against the Pound Sterling and the Euro at N2,160.43/£1 and N1,796.61/€1, respectively.

At the black market segment, the Naira depreciated against the US Dollar yesterday by N5 to sell for N1,735/$1, in contrast to the N1,730/$1 it was traded a day earlier.

In the cryptocurrency market, prices continue to rise in the aftermath of Mr Donald Trump’s election victory in the world’s largest economy, with Bitcoin (BTC) surpassing $77,000 for the first time before correcting, just as further rate cuts by the US Federal Reserve supported the rally. It gained 0.8% on Friday to quote at $76,562.86.

Further, Binance Coin (BNB) rose by 5.5% to $632.18, Ethereum (ETH) appreciated by 4.4% to $3,047.24, Dogecoin (DOGE) went up by 2.9% to $0.2036, Litecoin (LTC) increased by 2.7% to $73.27, Solana (SOL) expanded by 1.2% to $201.65, and Ripple (XRP) grew by 0.5% to $0.5529, while Cardano (ADA) depreciated by 0.7% to $0.4366, with the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closing at $1.00 each.

The above is the detailed content of Naira Loses 2.4% Value Against Dollar at NAFEM Despite Improved Forex Supply. For more information, please follow other related articles on the PHP Chinese website!