The Nigerian naira has recently appreciated by 1.71%, trading at N1,658.67 per US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on November 21, 2024, up from N1,687.52 the previous day [91452588]. This marks a notable recovery as the naira continues to navigate a volatile market landscape. On the same day, forex supply decreased by 5.56% to $163.66 million, indicating ongoing liquidity challenges [91452588].
Despite this positive movement in the official market, the parallel market remains stable, with the naira trading at N1,745 per dollar [91452588]. The recent fluctuations in the naira's value have been a continuation of a broader trend, where the currency has faced significant volatility throughout 2024. Earlier in November, the naira traded at N1,652.25 per dollar, reflecting a loss of 0.12% from the previous day, and had previously closed at N1,678.87 on November 8, 2024 [bf1e712e][9454866f].
The Central Bank of Nigeria (CBN) has been actively trying to stabilize the currency, recently announcing a reduction in the customs exchange rate for importers to N1,655.38 per dollar [4bed90a6]. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, has suggested implementing a fixed exchange rate of N1,000 per dollar for six months to help stabilize trade costs [4bed90a6].
The naira's depreciation has been a concern for many businesses, with companies like Nigerian Breweries and Nestlé Nigeria reporting increased liabilities due to their exposure to dollar fluctuations [b2b358a0]. Recent surveys by the CBN indicate that businesses expect further depreciation through December, reflecting a lack of confidence in the currency's stability [b2b358a0].
In the cryptocurrency market, Bitcoin reached a record high of $99,000 before correcting to $98,981.99, amidst the backdrop of the fluctuating naira exchange rates [91452588]. Other cryptocurrencies, including Ripple (XRP), surged by 24.5% to $1.39, while Cardano (ADA), Solana (SOL), and Ethereum (ETH) also saw significant gains [91452588]. The recent appointment of Howard Lutnick as Secretary of Commerce by US President-elect Donald Trump, who supports Bitcoin as a transformative asset, could further influence market dynamics [6e820ffe]. The Federal Reserve's recent decision to cut interest rates from 4.5% to 4.75% may also have implications for the dollar's strength, although analysts caution that this strength may not be sustainable due to long-term economic threats [b2b358a0].