Naira Shrinks Against Dollar at P2P, I&E, Flourishes at Black Market

It was a bad day for the Nigerian currency in the official market and the peer-to-peer (P2P) segments of the foreign exchange (FX) market segments on Wednesday as it depreciated against the US Dollar at the close of business.

However, the Naira gained strength against the greenback in the black market yesterday for the second straight session this week.

Data obtained showed that the local currency gave up 67 Kobo or 0.14 per cent during the session in the Investors and Exporters (I&E) window to trade at N463.00/$1 compared with the previous day’s rate of N462.33/$1.

This happened amid a slight increase in the value of forex demand in the spot market by 13.6 per cent or $6.28 million as the turnover stood at $52.32 million, in contrast to the $46.04 million achieved a day earlier.

Also, in the P2P category, the domestic currency declined against its American counterpart yesterday by N1 to settle at N751/$1 versus the preceding session’s closing price of N750/$1.

In the interbank segment, the Naira also witnessed a downward movement against the Pound Sterling as it shrank by 32 Kobo to close at N575.09/£1 versus its previous rate of N574.77/£1 while it gained 79 Kobo against the Euro to close at N505.32/€1 compared with the previous day’s rate of N506.11/€1.

In the cryptocurrency market, traders reacted to the decision of the US Federal Reserve to hike interest rates by a quarter of a percentage point.

The central bank explained that it took the action to give it the time to assess the fallout from recent bank failures, wait on the resolution of a political standoff over the United States debt ceiling, and monitor the course of inflation.

After the announcement, Bitcoin (BTC) jumped by 1.2 per cent to $29,027.59, Ethereum (ETH) saw its value go up by 1.3 per cent to $1,896.08, Binance Coin (BNB) rose by 1.1 per cent to $326.37, Litecoin (LTC) appreciated by 0.9 per cent to $89.13, and Dogecoin (DOGE) leapt by 0.6 per cent to $0.0793.

But the value of Solana (SOL) moderated by 2.4 per cent to $22.03, Ripple (XRP) recorded a 0.4 per cent slump to trade at $0.4637, and Cardano (ADA) lost 0.1 per cent to finish at $0.391, while the US Dollar Tether (USDT) and Binance USD (BUSD) closed flat at $1.00 each.

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