The Nigerian currency, Naira, has been trending downward against the US dollar in both official and black market segments.
Data from the FMDQ Exchange revealed that at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Naira depreciated to N1,416.57 per dollar from N1,354.21 per dollar on Monday. This indicates a notable loss of N62.36 or 4.60 per cent.
Similarly, on the black market, the Naira’s value dipped from N1,410 per dollar on Monday to N1,415 per dollar on Tuesday. This consistent weakening trend comes despite efforts by the Economic and Financial Crimes Commission (EFCC) to clamp down on currency traders in Abuja and Lagos and the government’s efforts to sustain the currency.
In line with efforts to stabilise the foreign exchange market, the Securities and Exchange Commission (SEC) announced plans to delist the Naira from all peer-to-peer cryptocurrency platforms. This coincides with the government’s heightened crackdown on cryptocurrency and broader agenda to fight exchange rate manipulation.
Emomotimi Agama, the newly appointed Director-General of SEC, disclosed the government’s plans to implement new regulations to oversee the cryptocurrency industry. The moves are reportedly aimed at curbing illicit activities and maintaining currency stability.
The US dollar index, on the other hand, resumed its bullish trend. It rose by 0.14% to 105.5 index points despite weaker-than-expected jobs data and federal reserve officials’ efforts to temper rate hike speculations. While the Fed maintains expectations of potential rate cuts by year-end, investors closely monitor Fed policies and their implications on the currency’s strength.
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