Naira weakens against dollar by 0.61% to N1,681/$1 amid low forex supply

esanya

The Naira depreciated against the US Dollar on Wednesday at the official market by N10.33 or 0.61 per cent to close at N1,681/$1, owing to a decline in forex supply.

At the preceding trading session, the exchange rate was N1,671.32/$1.

The value of FX transactions at the spot market, according to data obtained from the FMDQ Securities Exchange, declined by $21.99 million or 10.1 per cent to $196.78 million from the $218.77 million recorded a day earlier.

The decline in forex supply came as the Central Bank of Nigeria (CBN) limited the sale of FX in order to regulate cash sales in the currency market to ensure stability and compliance.

Also, the emergence of Mr Donald Trump as the next US president made the Dollar stronger and weakened a host of other currencies, like the Naira.

The Naira also lost against the Pound Sterling in the official market yesterday by N8.74 to sell at N2,169.37/£1 compared with the preceding session’s N2,160.63/£1, but closed flat against the Euro at midweek at N1,819.86/€1.

In the black market, the domestic currency traded flat against the US Dollar on Wednesday at N1,725/$1.

In the cryptocurrency market, tokens maintained their upward movements following Mr Trump’s presidential win, where expectations of pro-crypto policies and deregulation are boosting investor confidence.

Ethereum (ETH) rose by 8.0 per cent to trade at $2,804.82, Ripple (XRP) grew by 3.0 per cent to $0.5546, Binance Coin (BNB) added 1.8 per cent to close at $594.83, Cardano (ADA) appreciated by 1.4 per cent to $0.3681, Solana (SOL) gained 0.8 per cent to sell at $187.20, and Bitcoin (BTC) increased by 0.3 per cent to $74,769.94.

On the flip side, Dogecoin (DOGE) slumped by 7.9 per cent to $0.1905, and Litecoin (LTC) went down by 1.0 per cent to $70.30, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.