Black Market Naira/Dollar Exchange Rate Drops to N740/$1 :
The Naira considerably increased versus the Dollar on Wednesday, indicating that President Bola Tinubu‘s move to combine all exchange rate channels into one is clearly having a positive impact on the illicit market.
As foreign money starts to come into the market due to concerns that the local currency may strengthen, Business Post writes that the Nigerian Naira increased by N19, or 2.50 percent, during the session to trade at N740 to $1, down from N759 to $1 on Tuesday.
Similar circumstances occurred in the Peer-2-Peer (P2P) window of the foreign exchange (FX) market yesterday, when the local currency increased against the US dollar by N4 to quote at N764/$1 as opposed to N768/$1 the day before.
The local currency fell 17 Kobo, or 0.04 percent, against the dollar to trade at N464.67/$1 versus N464.50/$1, despite a 13.1%, or $19.02 million, increase in the value of forex trades in the spot market. This feat, however, could not be duplicated in the Investors and Exporters (I&E) arm of the market.
In contrast to the previous session’s $144.72 million, the trading session’s turnover was $163.74 million.
The local currency also lost 52 Kobo against the Euro, ending the day at N495.89/€1, down from N496.41/€1, and declined by N2.64 against the British pound, ending the day at N574.37/£1, in the interbank segment of the foreign exchange market on Wednesday.
The majority of the tokens tracked by Business Post finished in the danger zone, and the market for digital currencies was dominated by bears. Bitcoin (BTC) lost 2.1% to close at $27,150.29.
Ethereum (ETH) slid by 1.4 per cent to $1,876.67, Solana (SOL) slumped by 1.9 per cent to $20.80, Litecoin (LTC) shed 1.8 per cent to sell for $90.67, Ripple (XRP) declined by 1.7 per cent to $0.5095, Binance Coin (BNB) went south by 1.6 per cent to $306.61, Cardano (ADA) dropped 1.5 per cent to close at $0.3732, and Dogecoin (DOGE) shrank by 1.1 per cent to $0.0717, while Binance USD (BUSD) and the US Dollar Tether (USDT) closed flat at $1.00 apiece.
