Nigerian Naira Surges, Cryptocurrency Market Booms Ahead of Bitcoin Halving

The Naira gained value against the US Dollar, British Pound, and Euro at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, marking its fourth consecutive day of appreciation. The local currency strengthened by 0.3% against the Dollar, settling at N1,251.05/$, and also made gains against the Pound and Euro, with improved forex supply contributing to the gains.

Nigerian Naira Surges Against Major Currencies, Cryptocurrency Market Booms Ahead of Bitcoin Halving

Lagos, Nigeria - The Nigerian Naira has extended its bullish momentum against the US Dollar and other major currencies for the fourth consecutive day on the Nigerian Autonomous Foreign Exchange Market (NAFEM), strengthening significantly to close at a more favorable rate on Friday.

The local currency gained 0.3 percent or N4.02 against the greenback, trading at N1,251.05/$1 compared to Thursday's closing rate of N1,255.74/$1. This marks a consistent appreciation over the past four trading days.

Against the British Pound Sterling, the Naira appreciated by N5.96 to settle at N1,585.79/£1, up from N1,591.75/£1 recorded the previous day. Similarly, the Naira gained against the Euro, improving by N4.56 to trade at N1,360.59/€1, compared to Thursday's price of N1,365.15/€1.

Analysts attribute the Naira's gains to an improved supply of foreign exchange in the currency market, as evidenced by a 78.6 percent increase in turnover. The turnover surged from $138.99 million to $248.27 million, injecting more liquidity into the market.

Meanwhile, in the parallel market, the Naira maintained stability against the US Dollar on Friday, trading flat at N1,240/$1. This suggests a convergence in exchange rates between the official and parallel markets, indicating a greater level of stability.

Cryptocurrency Market Anticipates Bitcoin Halving

In the cryptocurrency market, several cryptocurrencies, led by Dogecoin (DOGE), have experienced a surge in prices in anticipation of the upcoming Bitcoin (BTC) halving event. This event, scheduled for April 21, 2024, will reduce the supply of BTC by half, making the cryptocurrency more scarce in the markets.

DOGE, the day's top gainer, soared by 5.9 percent to $0.1839. Other notable gainers include Binance Coin (BNB), which rose by 2.1 percent to $582.60; Ethereum (ETH), which gained 1.9 percent to $3,343.38; Cardano (ADA), which appreciated by 1.8 percent to $0.5817; and BTC, which climbed by 1.7 percent to $68,169.74.

Ripple (XRP), Solana (SOL), and Litecoin (LTC) also posted gains, expanding by 1.5 percent, 1.3 percent, and 0.5 percent, respectively. Meanwhile, the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.

Industry experts believe that the anticipation of reduced BTC supply is driving up prices for other cryptocurrencies as investors expect them to appreciate in value once BTC becomes more scarce. The upcoming halving event is expected to have a significant impact on the cryptocurrency market, potentially leading to further price increases and volatility.