Emmanuel OchayiIn a twist of currency dynamics, the naira faces a tale of two markets as its value fluctuates to N1,230/$1 and N1,245/$1, driven by unofficial P2P and physical black markets despite Nigeria’s apex bank interventions.
Despite efforts by the Central Bank of Nigeria (CBN) to inject liquidity and clear backlogs, the naira slipped against the dollar on Tuesday.
While official markets showed some gains, with the naira strengthening against the US dollar, the P2P market and black market painted a different picture.
Unofficial trades saw the naira dipping to N1230/$ and N1,245/$ respectively, diverging significantly from official rates.
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CBN’s clearing of outstanding foreign exchange forwards amounting to $2 billion failed to sway unofficial market traders, who remain unfazed by these developments.
Globally, the U.S. dollar index held steady amid speculation around the Federal Reserve’s policy.
Mixed economic data and geopolitical tensions in the Middle East contribute to the uncertainty surrounding the Fed’s potential rate adjustments, leaving currency speculators in a balancing act between dollar favoritism and expectations of rate cuts.
As markets navigate through conflicting signals, the focus appears set on geopolitical developments and forthcoming inflation data, indicating continued volatility in currency markets.
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