Pressure on the Naira against the Dollar eased on Tuesday, March 24, by 0.41 per cent or N5.75 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) to N1,382.63/$1 from the previous day’s N1,388.38/$1.
Also, the Nigerian currency gained N11.43 against the Pound Sterling in the official market during the session to sell for N1,848.86/£1 versus Monday’s closing rate of N1,860.29/£1, and improved its value against the Euro by N9.43 to settle at N1,599.98/€1 versus the preceding session’s price of N1,609.41/€1.
However, the Naira lost N17 against the Dollar at the GTBank forex desk to close at N1,388/$1, in contrast to the previous N1,371/$1, and closed flat against the US Dollar in the parallel market at N1,400/$1.
Analysts at Quest Merchant Bank said global factors are shaping investor sentiment, giving the local currency the needed strength to maintain stability in the currency market. The prolonged conflict in the Middle East has heightened risk aversion, reducing appetite for emerging-market assets.
The bank noted that de-escalation in geopolitical tensions, alongside Nigeria’s attractive yield environment, could help sustain offshore inflows and support the currency in the near term, though structural challenges remain.
As for the cryptocurrency market, profit-taking erased gains made by some tokens after it was reported that a one-month ceasefire in the Iran war could be announced soon as part of a wider deal, easing worries that gripped the markets.
Other terms of the deal reportedly include a dismantling of Iran’s existing nuclear capabilities and that country’s vow to “never seek” nuclear weapons.
The news was felt most immediately in the oil market, with Brent Crude dropping from $104 to below $100 in a few minutes.
Previously, US President Donald Trump announced a five-day pause on strikes against Iranian energy infrastructure.
Solana (SOL) depreciated by 1.4 per cent to $90.21, Ripple (XRP) slumped by 1.3 per cent to $1.40, Bitcoin dipped 0.6 per cent to $70,235.96, Ethereum (ETH) declined by 0.4 per cent to $2,143.38, and Binance Coin (BNB) dropped 0.3 per cent to sell for $636.19.
On the flip side, Cardano (ADA) rose 1.4 per cent to $0.2652, TRON (TRX) added 0.7 per cent to close at $0.3077, and Dogecoin (DOGE) appreciated by 0.3 per cent to $0.095, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.