Naira Closes the Day Stronger against the US Dollar

The Naira closed stronger against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, May 21

The Nigerian Naira closed stronger against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, May 21 by N6.99 or 0.44 per cent to trade at N1,584.26/$1 compared with the preceding day’s value of N1,591.25/$1.

It also appreciated against the Pound Sterling in the official market at midweek by 36 Kobo to close at N2,126.24/£1 versus Tuesday’s rate of N2,126.60/£1 but lost N3.59 against the Euro to settle at N1,795.08/€1, in contrast to the previous trading day’s N1,791.49/€1.

In the parallel market, the exchange rate of the Naira to the Dollar remained unchanged yesterday at N1,625/$1, according to data obtained by Business Post.

The Nigerian currency has maintained stability on the greenback lately amid the decision of the Central Bank of Nigeria (CBN) to retain the Monetary Policy Rate (MPR) at 27.5 per cent.

On Tuesday, the Monetary Policy Committee (MPC) of the apex bank reiterated the Nigerian financial remains sound and stable, with performative indicators, adding that the CBN should restore confidence and rebuild trust.

Policy direction, including boosting local production, easing FX pressure, and strengthening non-oil exports also offered support to the Naira.

In the cryptocurrency market, a mix of positive momentum, buoyed by macroeconomic factors, growing optimism around US crypto regulation, and continued interest from institutional buyers pushed prices of tokens higher.

This came as investors sought alternative options as equity markets fell due to recent downgrade of US sovereign debt, with crypto acting as a hedge.

Binance Coin (BNB) added 2.9 per cent to sell for $679.40, Cardano (ADA) appreciated by 2.9 per cent to $0.7860, Solana (SOL) grew by 2.7 per cent to $175.69, Dogecoin (DOGE) jumped by 2.6 per cent to $0.2379, Bitcoin (BTC) expanded by 2.6 per cent to $110,518.89, Litecoin (LTC) increased by 2.1 per cent to $98.00, Ripple (XRP) gained 0.7 per cent to trade at $2.39, and Ethereum (ETH) soared by 0.6 per cent to $2,608.25, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat $1.00 each.