Naira Gains N1.31 Against Dollar at NAFEM as FX Turnover Jumps 122.9%

The naira strengthened by N1.31, or 0.09 per cent, to exchange at N1,329.16/$1 on Wednesday, September 30, in the Nigerian Autonomous Foreign Exchange Market (NAFEM). It closed at N1,330.47/$1 the previous day. The local currency, however, fell against the pound sterling and the euro in the same official market.

Official Market: Pound, Euro Weigh on Naira

The naira dropped by N5.97 against the pound sterling to trade at N1,766.59/£1, compared with Tuesday’s N1,760.62/£1. It depreciated against the euro by 50 Kobo to quote at N1,510.06/€1, versus the preceding day’s N1,509.56/€1. At the black market, the naira maintained stability against the United States dollar during the session at N1,370/$1. At the GTBank FX desk, it traded flat at N1,338/$1.

Turnover, Deals and Reserves

Central Bank of Nigeria (CBN) daily FX data showed that interbank turnover increased by 122.9 per cent to $179.577 million from $80.582 million. The number of deals executed at the official window grew to 94 deals from 37 deals. Gross foreign exchange reserves soared to $54.6 billion in mid-September, the highest level in over 18 years. The reserves provide the central bank with sufficient room to stabilise short-term volatility without aggressive market interventions. Market sentiment remains influenced by the CBN’s recent monetary policy easing, where the Monetary Policy Committee (MPC) reduced the baseline Monetary Policy Rate (MPR) by 350 basis points to 23.0 per cent.

Crypto Rises on Softer US Inflation Report

The cryptocurrency market was up on Wednesday due to a softer-than-expected US inflation report. August’s US personal consumption expenditures report showed inflation cooling more than expected, with prices up 3.4 per cent from a year earlier and 3.0 per cent excluding food and energy. This reduced the odds of another Federal Reserve rate increase in October and made December look like the more likely next move. Persistently high Treasury yields erased much of crypto’s advance, with the 10-year yield near 5.3 per cent and the 30-year yield close to its highest level since 2002. Following the US Federal Reserve’s initial rate hike in three years earlier this month, there were expectations of another Federal Reserve rate increase in October.

Cardano (ADA) appreciated by 3.1 per cent to $0.2527, Dogecoin (DOGE) jumped by 2.1 per cent to $0.0957, Ethereum (ETH) added 1.9 per cent to trade at $2,718.41, Bitcoin (BTC) improved by 1.4 per cent to $84,348.25, and Binance Coin (BNB) expanded by 1.1 per cent to $771.27. Solana (SOL) rose by 0.6 per cent to $119.44, Ripple (XRP) soared by 0.4 per cent to $1.50, and TRON (TRX) went up by 0.1 per cent to trade at $0.3373, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.

What It Means for the Naira

With gross reserves at $54.6 billion and official market turnover rising sharply, the CBN has more headroom to manage short-term naira volatility. The parallel market rate held at N1,370/$1, giving consumers and businesses a steady reference point even as the official rate posted a marginal gain against the dollar.