The Naira experienced mixed fortunes on Tuesday, maintaining stability in the black market but weakening in the official exchange market.
Data from Business Post showed that the Naira traded at N1,585/$1 in the black market, unchanged from the previous session. However, at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the local currency depreciated by 0.27% (N4.14), settling at N1,536.12/$1 compared to Monday’s N1,531.98/$1.
Naira’s Performance Against Other Currencies
Euro (€): Fell by N5.05 to N1,673.50/€1 (from N1,668.46/€1).
Pound (£): Strengthened by N34.72 to N1,949.89/£1 (from N1,984.61/£1).
Oil Facility Attacks Put Pressure on FX Market
The recent attack on oil pipelines in Rivers State has raised concerns about Nigeria’s forex earnings, which could be affected due to potential disruptions in crude oil production. This comes at a time when Nigeria is seeing improvements in oil output, making any setback particularly damaging.
Additionally, weak demand for Nigerian crude oil persists, with some March loadings still unsold as buyers explore alternative sources. This could further impact FX inflows and the broader Nigerian economy.
Crypto Market Sees Bullish Momentum Amid Fed Meetings
The crypto market was largely bullish as traders anticipated the outcome of the U.S. Federal Open Market Committee’s (FOMC) two-day policy meeting. While no interest rate changes were expected, investors were looking for signals of a more dovish stance amid recent market volatility and cooling inflation.
Top Gainers:
Ethereum (ETH): +2.2% → $1,936.87
Solana (SOL): +1.9% → $126.20
Dogecoin (DOGE): +1.1% → $0.1638
Litecoin (LTC): +1.0% → $90.23
Ripple (XRP): +0.9% → $2.29
Cardano (ADA): +0.9% → $0.7101
Bitcoin (BTC): +0.7% → $83,216.28
Tether (USDT): +0.02% → $1.00
Losers:
Binance Coin (BNB): -2.5% → $617.04
US Dollar Coin (USDC): Unchanged at $1.00
Conclusion
While the Naira remains under pressure, particularly in the official market, stability in the black market suggests some level of confidence among traders. However, concerns over oil production disruptions and weak crude demand pose risks to FX liquidity.
Meanwhile, the crypto market’s bullish run reflects investor optimism ahead of the U.S. Fed’s policy announcement, with expectations of a more accommodative stance in the coming months.
Key Watchpoints:
Impact of oil facility attacks on FX reserves
U.S. Fed’s stance on interest rates
Naira’s response to evolving economic conditions
