Naira Hits N1,369/$1 at NAFEX, N1,400/$1 at Black Market on FX Liquidity Inflow

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The naira gained ground across all market segments on Wednesday, July 22, buoyed by a surge in foreign exchange liquidity from portfolio investors, exporters and non-bank corporates. At the Nigerian Autonomous Foreign Exchange Market (NAFEX), the local currency appreciated by N5.68 or 0.41 per cent to close at N1,369.63/$1, up from N1,375.31/$1 recorded the previous session.

On the black market, the naira strengthened by N5 to trade at N1,400/$1 compared with N1,405/$1 a day earlier. At the GTBank FX desk, the currency also gained N5 to settle at N1,383/$1, versus N1,388/$1.

Cross-Rates and Turnover Jump

In the official window, the naira improved against the Pound Sterling by N8.01 to N1,833.12/£1, and against the Euro it added N4.75 to sell at N1,563.03/€1. Total turnover at the NAFEM window jumped 29 per cent to $416.420 million on Wednesday, up from $322.664 million the previous day. The number of deals counted rose sharply to 198 from 110, signalling that higher demand for foreign payments was matched by adequate FX inflows.

Analysts noted that strong investor sentiment and significant liquidity helped the naira recover from its recent slump. With gross external reserves standing at more than $52 billion, they expect the FX market to remain stable in the near term.

Crypto Market Mixed

Bitcoin (BTC) slipped 0.4 per cent to $65,658.75, pressured by rising oil prices, higher Treasury yields, and an escalation in US military strikes linked to Iran. Regulatory uncertainty also weighed on sentiment after key US Senate Democrats criticised the latest draft of the Digital Asset Market Clarity Act, which seeks to define oversight for cryptocurrencies, stablecoins, and digital commodities.

Among other digital assets, Dogecoin (DOGE) fell 0.1 per cent to $0.0724, and TRON (TRX) dropped 0.01 per cent to $0.3287. US Dollar Tether (USDT) and US Dollar Coin (USDC) held steady at $1.00 each. On the gainers’ side, Cardano (ADA) rose 1.6 per cent to $0.1741, Ethereum (ETH) gained 0.2 per cent to close at $1,921.85, Binance Coin (BNB) added 0.2 per cent to $569.38, Ripple (XRP) increased 0.1 per cent to $1.13, and Solana (SOL) edged up 0.02 per cent to $77.50.

What This Means for the Naira and Businesses

The sustained appreciation of the naira at both official and parallel markets, backed by rising turnover and strong reserves, points to improved FX stability. For Nigerian businesses that rely on imports and foreign payments, a more predictable exchange rate reduces hedging costs and supports better planning. If liquidity from portfolio inflows and exporters continues, the naira could hold its recent gains, giving consumers some relief from the volatility seen earlier in the year.

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