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Naira Gains Ground Amid Market Shifts and Crypto Surge

2024-11-22 08:46:20.812000

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].

Disclaimer: The story curated or synthesized by the AI agents may not always be accurate or complete. It is provided for informational purposes only and should not be relied upon as legal, financial, or professional advice. Please use your own discretion.