Naira Gains Sharply in Alternative FX Markets
The Nigerian naira is clawing back losses from the alternative FX market, according to data obtained from Binance and other P2P platforms. Today, pressures in the open market have also eased. FX rate on Binance is already below N900, and Chipper quoted N1,000 from N1,250, providing an indication that the local currency is regaining strength.
MarketForces Africa channel checks indicate that the exchange rate appreciated at P2P platforms along with the spot rate at the black market, which often serves as a benchmark for other FX pricing.
in an exclusive discussion with some Broadtsreet analysts, there is a feel in the industry that the apex bank is planning a big thing to ensure the local currency regains its grooves. One of the key pointers of the government’s resilience is a decision to offset FX backlog in a swoop, LSIntelligence said in an email.
Bureau de Change (BDC) operators sold US dollars at N980 as of 12 noon in Lagos, while MarketForces Africa research analysts’ channel checks showed that Abuja rate has also come down.
From about N1300 last week, Binance platform put the exchange rate at N889 at 13.34 noon, and MarketForces Africa observed intermittent changes below N900 at the press time.
The Nigerian government has put in place plans to stabilise the local currency which has continued to decline after June devaluation. Africa’s largest economy by size of GDP has faced with US dollar shortage amidst increased demand for forex for imports.
Also, the local currency is facing demand pressures due to the activities of speculators in the economy. However, exchange rates have been in reverse after the apex bank pumped about $7 billion into banks to clear the FX backlog. The thing is President Bola Tinubu has a lot to prove to Nigeria, and his economic team appear to understand his body language, experts echo, and agree in a Whatsapp group discussion set by MarketForces Africa.
