Nigerian Currency Market (NAFEX)
The Naira experienced further devaluation in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, losing 0.6% or ₦8.7 against the US Dollar, resulting in a new exchange rate of ₦1,308.52/$1. The Naira also weakened against the Pound Sterling, dropping by ₦47.93 to trade at ₦1,590.25/£1, and against the Euro, declining by ₦34.88 to exchange at ₦1,367.23/€1. These losses occurred despite efforts by the Central Bank of Nigeria (CBN) to increase the supply of foreign exchange in the system, with the turnover for the session surging by 47.8% to $197.54 million.
Black Market
In the parallel market, the local currency depreciated against the Dollar by ₦25, trading at ₦1,300/$1 compared to Tuesday’s closing value of ₦1,275/$1.
Cryptocurrency Market
The cryptocurrency market endured a predominantly bearish performance. Bitcoin (BTC) dipped to $64,000 amid extensive sell-offs and adverse funding rates following the halving event. The market witnessed volatility with $9.4 billion in crypto options set to expire. As BTC grappled to sustain its upward momentum, a significant sell-off ensued, with over 40 million long positions being liquidated. This has prompted concerns among investors and analysts, leading to speculation about the causes behind Bitcoin’s recent price decline. At press time, BTC was trading at $64,301.87, representing a 3.5% decrease.
Notable Cryptocurrency Performance
Solana (SOL) emerged as the most significant loser, plummeting by 6.5% to $147.86. Dogecoin (DOGE) depreciated by 6.0% to $0.1516, Cardano (ADA) decreased by 5.9% to $0.4765, Ripple (XRP) dropped by 3.7% to trade at $0.5277, Litecoin (LTC) slumped by 3.2% to sell at $83.82, and Ethereum (ETH) slipped by 2.7% to $3,163.82. However, Binance Coin (BNB) exhibited a slight uptick of 0.4% to trade at $148.28, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained stable at $1.00, respectively.
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News pulse: 6 bits out of 10
- Significance of the news: 7 – The news article provides an update on the performance of the Nigerian currency, the Naira, in the foreign exchange market. It highlights the depreciation of the Naira against the US Dollar, Pound Sterling, and Euro in the official market, as well as its decline in the black market. This information is significant for businesses and individuals involved in international transactions or those holding foreign currency assets.
- Innovative value of news: 1 – The news article does not introduce any novel concepts or innovative developments in the cryptocurrency market. It primarily focuses on reporting the price fluctuations of various cryptocurrencies.
- Potential impact of the news on the market: 5 – The news article’s coverage of the Naira’s depreciation could potentially influence market sentiment and impact the decisions of investors and businesses. However, it is unlikely to have a significant impact on the cryptocurrency market as a whole.
- Relevance of the news: 6 – The news article is relevant to individuals and businesses involved in foreign exchange transactions in Nigeria. It also provides insights into the performance of the Naira, which can be of interest to investors and analysts.
- Reliability of the news: 7 – The news article is published by Business Post Nigeria, a reputable news organization. The article cites official sources, such as the Central Bank of Nigeria, and provides detailed information on currency exchange rates.
- The general tone of the news: 6 – The news article takes a neutral tone, presenting both positive and negative developments in the foreign exchange market. It highlights both the depreciation of the Naira and the increase in foreign exchange supply by the Central Bank of Nigeria.
- News source: 6 – Business Post Nigeria is a credible news organization known for its coverage of business and economic issues. It has a good reputation for accuracy and reliability.