Naira Slips N1.07 to N1,334.72/$ at NAFEM as FX Turnover Doubles

The naira weakened by N1.07, or 0.08 per cent, against the US dollar on Wednesday, closing at N1,334.72/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM) from N1,333.65/$1 the previous day.

The local currency also lost ground against both the pound and the euro in the same official window. It fell N3.04 to N1,787.73/£1 from N1,784.69/£1, and shed N2 to close at N1,499.29/€1, compared with Tuesday's N1,497.29/€1.

Black market and bank desk hold steady

The parallel market was flat. The naira traded at N1,358/$1 in the black market and at N1,340/$1 at the GTBank FX desk, unchanged from the previous session.

Turnover told a different story. Central Bank of Nigeria (CBN) data showed interbank FX turnover jumped 110 per cent to $127.628 million from $60.715 million. The number of FX deals rose to 95 from 70.

Reserves and remittances cushion the currency

The naira has stayed relatively stable on the back of stronger formal remittance inflows and a rise in Nigeria's external reserves, which have provided a firmer buffer against FX pressure.

Analysts expect the currency to sustain the current movement in the near term. They warned, however, that rising government borrowing could threaten the outlook.

CBN Governor Yemi Cardoso said greater stability could encourage investment and support the development of financial products built around a more predictable macroeconomic environment.

Crypto market turns red

In the cryptocurrency market, most benchmarked coins fell as disappointing corporate outlooks and renewed doubts about artificial intelligence spending weighed on US stock futures and Asian markets. Oil rose amid renewed Middle East tensions.

Cardano (ADA) slipped 2.0 per cent to $0.2177, Dogecoin (DOGE) dropped 1.9 per cent to $0.0797, Solana (SOL) shrank 1.1 per cent to $104.61 and Binance Coin (BNB) fell 0.6 per cent to $738.23.

Ethereum (ETH) dipped 0.2 per cent to $2,430.94, Bitcoin (BTC) depreciated 0.1 per cent to $82,513.38 and TRON (TRX) also lost 0.1 per cent to $0.3303. Ripple (XRP) gained 0.7 per cent to $1.34, while Tether (USDT) and USD Coin (USDC) were flat at $1.00 each.

The naira's quiet close offers little relief for importers, who still buy dollars above N1,330 at the official window and N1,358 on the street. The doubling of FX turnover suggests more supply is reaching the formal market, a signal that could ease pressure on the currency if it holds.