Naira Depreciates to N1,366/$1 at Official FX Market, Third Straight Day of Losses

The naira fell for the third straight day at the official foreign exchange market on Wednesday, July 29, closing at N1,366.71/$1. That was a drop of N1.18 or 0.09 per cent from the previous day's rate of N1,365.53/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX).

Mixed Performance Against Euro and Pound

The Nigerian currency also weakened against the Euro, closing at N1,555.32/€1, down by N2.44 from Tuesday's N1,552.88/€1. However, it gained ground against the Pound Sterling, appreciating by N2.38 to trade at N1,815.82/£1, compared with N1,816.43/£1 the previous day.

At the black market, the naira traded flat against the greenback at N1,400/$1. It also remained unchanged at the GTBank forex counter at N1,370/$1.

Interbank Turnover Declines Sharply

Interbank FX turnover closed at $61.034 million, according to data from the Central Bank of Nigeria (CBN). That is about a 41 per cent day-on-day decline from $102.954 million the previous day. The number of deals at the interbank FX window also eased to 86 from 121 previously recorded.

With a slowdown in FX inflows from foreign portfolio investors, exporters and non-bank corporates, the CBN is anticipated to step up its market intervention to keep the local currency stable.

Crypto Market Turns Red as Fed Holds Rates

Meanwhile, the cryptocurrency market turned red during the session, as the US Federal Reserve left its benchmark fed funds rate range unchanged at 3.50 per cent to 3.75 per cent. This marked a sixth consecutive pause, as policymakers continue to grapple with stubborn inflation.

“Inflation remains elevated relative to the committee's 2 per cent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy,” the policy statement read.

Investors are watching closely for signs that the US central bank's communication strategy is changing under the leadership of Mr Kevin Warsh, who had been openly critical of the Federal Reserve's traditional use of forward guidance and the quarterly dot plot, which the bank uses to show officials' interest rate projections.

Dogecoin (DOGE) dropped 1.3 per cent to sell at $0.0699. Ripple (XRP) crashed by 1.2 per cent to $1.07. Ethereum (ETH) declined by 0.8 per cent to $1,902.73. Bitcoin (BTC) lost 0.6 per cent to finish at $63,977.25. Solana (SOL) went down by 0.4 per cent to $73.57. Cardano (ADA) depreciated by 1.2 per cent to $0.1625.

On the flip side, Binance Coin (BNB) went up by 0.4 per cent to $572.53, and TRON (TRX) soared by 0.3 per cent to $0.3263. The US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.

For Nigerian businesses and consumers, the continued official rate decline and falling FX turnover point to persistent pressure on the naira. That raises the stakes for CBN intervention to stabilise the currency and manage import costs.