The first trading session for the Naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX) ended on a negative note, as it lost N3.00 or 0.22 per cent against the Dollar on Monday, March 30, to trade at N1,383.58/$1 compared with last Friday’s closing price of N1,380.58/$1.
The local currency remains under pressure as increased demand for forex for international settlements and import-related obligations continue t0 strain available FX supply.
Last week, the Central Bank of Nigeria (CBN) shed the policy requiring International Oil Companies (IOCs) to keep half of their export proceeds in Nigeria and allowed them to fully access their funds. Market analysts noted that this could reduce the dollar supply, putting pressure on the nation’s legal tender whenever outflows exceed inflows.
The country’s external reserves recorded a marginal decline, falling by 0.7 per cent to $49.48 billion, reflecting a depletion of about $350 million and signalling continued pressure on Nigeria’s FX buffer.
However, the Nigerian currency further appreciated against the Pound Sterling in the official market during the session by N12.05 to N1,824.94/£1 from N1,836.99/£1, and gained N5.80 against the Euro to sell at N1,586.28/€1 versus N1,592.08/€1.
Equally, at the GTBank forex desk, the Naira improved its value against the greenback yesterday by N7 to N1,394/$1 from N1,401/$1, and remained unchanged at the parallel market at N1,410/$1.
As for the cryptocurrency market, it was mixed even as Federal Reserve Chairman Jerome Powell eased any concerns about imminent rate hikes.
The central banker said the lender is inclined to look past the Iran-related energy shock for now and hold rates steady, adding that the US central bank — for the moment — is looking past short-term oil price shocks and focusing on inflation expectations that remain “well anchored.” As a result, bond yields fell, but oil continued its rise, ultimately pressuring the stock market and crypto.
Solana (SOL) gained 1.1 per cent to sell at $82.68, Ethereum (ETH) appreciated by 1.0 per cent to $2,021.66, Cardano (ADA) grew by 1.0 per cent to $0.2431, Ripple (XRP) jumped 0.2 per cent to $1.32, and Bitcoin (BTC) added 0.1 per cent to settle at $66,568.25.
However, TRON (TRX) dipped 1.0 per cent to $0.3199, Dogecoin (DOGE) went down by 0.2 per cent to $0.0909, and Binance Coin (BNB) dropped 0.1 per cent to $609.25, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.