Nigerian Currency Falls to N1,488.60/$1 Amid 48% Slide in Dollar Supply

The Nigerian currency depreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, June 5 amid a significant shortfall in the supply of Dollars to the market.

The value of forex transactions executed at the spot market yesterday, according to data from the FMDQ Securities Exchange, decreased by 48.7 per cent or $31.56 million to $205.43 million from the preceding session’s $236.99 million.

This took a toll on the Naira, which 0.8 per cent or N11.65 against the greenback to settle at N1,488.60/$1, in contrast to Tuesday’s closing value of N1,476.95/$1.

However, the domestic currency maintained stability against the Pound Sterling and the Euro in the official market at midweek, closing unchanged at N1,879.89/£1 and N1,604.70/€1, respectively.

In the same vein, the local currency traded flat against the US Dollar in the parallel market on Wednesday at N1,500/$1, according to data obtained by Business Post.

Despite recent interventions from the Central Bank of Nigeria (CBN) in the FX market, the local currency has been going through volatility since the middle of April.

Meanwhile, in the cryptocurrency market, Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalisation, is experiencing a surge in user activity and attracting bullish predictions, gaining 1.6 per cent yesterday to close at $3,863.97.

Binance Coin (BNB) went up by 1.5 per cent to $701.40, Litecoin (LTC) jumped by 1.4 per cent to $85.08, Solana (SOL) appreciated by 0.4 per cent to $173.59, and Ripple (XRP) added 0.05 per cent to trade at $0.5255.

However, Cardano (ADA) weakened by 0.4 per cent to $0.4593, Dogecoin’s (DOGE) depreciated by 0.2 per cent to sell at $0.1626, and Bitcoin (BTC) lost 0.09 per cent to close at $71,081.57, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.

By Adedapo Adesanya

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