Naira Slips to N1,347.94/$1 at NAFEM as FX Turnover Falls 62.8%

The naira started the new week on a negative note on Monday, November 2, depreciating against the United States dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM). Central Bank of Nigeria (CBN) data showed the domestic currency shed N1.68 or 0.12 per cent against the greenback in the official FX market to trade at N1,347.94/$1, compared with the previous session's N1,346.26/$1.

Official Market Weakness

The local currency also weakened against the Pound Sterling in the same market window by N3.23 to end at N1,809.34/£1, compared with last Friday's N1,803.58/£1. It lost N1.77 against the Euro to sell at N1,512.26/€1, in contrast to the previous trading day's N1,503.23/€1.

At the black market, the naira traded flat against the US dollar on Monday at N1,378/$1. It also remained unchanged at the GTBank forex desk at N1,354/$1.

Turnover and CBN Sales

The negative outcome in the official market came despite easing pressure. CBN data showed interbank FX turnover slipped further by 62.8 per cent to $21.765 million from $58.850 million. The number of deals fell to 23 from 72 deals.

Last week, the CBN sold $950 million to banks and other authorised dealers in the foreign exchange market to address the liquidity gap and strengthen the local currency. Activity in the interbank FX market increased as market makers continued to bid for companies arranging seasonal imports and settling non-bank corporate FX liabilities.

Crypto Market Slides

The cryptocurrency market crumbled as a deepening selloff in US chipmakers dragged down Asian stocks hours before Americans vote in midterm elections. Traders are weighing the risk of a Democratic sweep in Tuesday's midterm elections against signs that the cryptocurrency market could be setting up for a rebound, with billions of Dollars in short positions and a wave of withdrawals from exchanges drawing attention.

Customers of Binance, the world's largest cryptocurrency exchange, have withdrawn approximately $5 billion from the platform since it resumed withdrawal services, following a massive cyberattack in which hackers stole $6.3 billion. The theft has been attributed to a hacking group linked to North Korea.

In the last 24 hours, Solana (SOL) lost 3.5 per cent to sell at $91.56. Dogecoin (DOGE) depreciated by 2.7 per cent to $0.0739. Cardano (ADA) decreased by 2.5 per cent to $0.1876. Bitcoin (BTC) crashed by 2.3 per cent to $76,498.82. Binance Coin (BNB) tumbled by 2.2 per cent to $694.54. Ethereum (ETH) slipped by 2.0 per cent to $2,244.78. Ripple (XRP) fell by 0.4 per cent to $1.24. TRON (TRX) appreciated by 2.1 per cent to $0.3208. The US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

The official and black market quotes leave Nigerian businesses watching FX access and import costs as the naira remains under pressure.