Home Market Naira Weakens at Peer-to-Peer, I&E, Parallel Market

Naira Weakens at Peer-to-Peer, I&E, Parallel Market

by Harry Choms

On Tuesday, March 14, the Naira fell against the US dollar in the various segments of the foreign exchange (forex) market [parallel market, Peer-to-Peer (P2P), and Investors and Exporters (I&E)].

In the P2P segment, traders exchanged their local currency for US dollars at an average rate of N754/$1 yesterday, compared to N752/$1 the previous session, indicating a N2 decrease.

In the black market, the local currency fell N2 against the US dollar to settle at N746/$1, down from N744/$1 last Friday.

In the same vein, the Nigerian currency fell by 17 Kobo, or 0.04 percent, against the US dollar in the I&E window yesterday, settling at N461.67/$1, down from N461.50/$1.

The Nigerian currency fell as the value of FX transactions fell by 5.95 percent, or $4.92 million, to $77.64 million from $82.56 million during the session.

In the interbank market, the Naira fell N9.48 against the Pound Sterling, closing at N557.49/£1 from N548.01/£1, and fell N5.48 against the Euro, closing at N492.59/£1 versus N487.11/£1.

There was a green wave across benchmarked currencies in the cryptocurrency market after US regulators stepped in to back deposits at Silicon Valley Bank (SVB) and Signature Bank, averting what has been dubbed a potential financial crisis. This encouraged markets, including the cryptocurrency market, to believe that the near collapse of the banking sector would prompt the US Federal Reserve to scale back its rate hike.

Bitcoin increased its price above $24,000 by 9.6 percent to $24,386.85, while Ethereum (ETH) increased by 5.4 percent to $1,680.74.

Binance Coin (BNB) added 6.5 percent to sell for $307.31, Litecoin (LTC) went up by 3.2 percent to trade at $81.16, Solana (SOL) improved by 3.5 percent to $20.37, Dogecoin (DOGE) expanded by 3.2 percent to $0.0723, Cardano (ADA) added 1.5 percent to trade at $0.3443, and Ripple (XRP) recorded a 0.6 percent appreciation to quote at $0.3714, while the US Dollar Tether (USDT) and Binance USD (BUSD) traded flat at $1.00 each.

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