Naira Gains 85 Kobo to N1,330.47/$1 at NAFEM as FX Turnover Jumps 225.3%
By Aboki Forex —
The Naira appreciated against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, September 29, closing at N1,330.47/$1. This was an 85 Kobo or 0.06 per cent gain from Monday’s N1,331.32/$1.
The currency also strengthened against the Pound Sterling and Euro at the official market. It rose by N5.39 to N1,760.62/£1 from N1,766.01/£1 and gained N3.23 on the Euro to sell at N1,509.56/€1 from N1,512.79/€1.
GTBank, Parallel Market Rates
At the GTBank forex counter, the Naira depreciated by N2 to N1,338/$1 from N1,336/$1. It traded flat at the parallel market at N1,370/$1.
Interbank Turnover Rises
The Central Bank of Nigeria (CBN) said in its daily FX data that interbank turnover increased by 225.3 per cent to $80.582 million on Tuesday from $24.731 million on Monday. The number of deals rose to 94 from 37.
Expectations are that the Naira will remain relatively stable in the near term. The US Dollar is still stronger this week due to anticipation of improved FX inflows from oil receipts, capital importation and an improved balance of trade.
Nigeria’s gross external reserves rose to $54.91 billion from $45.50 billion at the start of the year, supporting the Naira appreciation.
Crypto Mostly Mixed
In the cryptocurrency market, the two most valued coins dropped while other benchmarked coins rose. Traders are waiting for a key US inflation reading later on Wednesday for clues on where interest rates go next. A high print tends to raise the odds of a hike, which lifts the Dollar and weighs on risk assets like crypto.
Following the US Federal Reserve’s initial rate hike in three years earlier this month, there are expectations of another Federal Reserve rate increase in October.
Bitcoin (BTC) slipped by 0.11 per cent to $83,355.84. Ethereum (ETH) dropped 0.09 per cent to $2,674.38.
TRON (TRX) increased by 0.9 per cent to $0.3375. Solana (SOL) jumped by 0.7 per cent to $119.03. Binance Coin (BNB) expanded by 0.6 per cent to $764.06. Ripple (XRP) soared by 0.6 per cent to $1.50. Cardano (ADA) appreciated by 0.3 per cent to $0.2458. Dogecoin (DOGE) grew by 0.1 per cent to $0.0939. The US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
What It Means
The stronger official rate and higher FX turnover offer some relief for importers and businesses pricing dollar goods. The parallel market stays above N1,370/$1, so the gap with the official window remains a cost factor for firms that cannot access NAFEM.