Foreign exchange speculators post heavy losses as Naira exchanges below N890 to the Dollar

Naira appreciated in the P2P market when it broke below the N900 price on Binance in the early hours of Tuesday.

The price patterns on the USDT/NGN chart highlighted a steady decline from N945 to N890 against the dollar as speculators reassess their positions.

The Central Bank of Nigeria can intervene through the official channel. The Nigerian local currency gained N55/$

Forex traders attribute the naira’s recent upside to the President’s meeting with the Governor of CBN on Monday.

Market participants opined that the naira’s appreciation took effect on reports that the CBN had plans to resolve the country’s currency crisis and stabilize the exchange rate in the coming weeks.

The Apex bank governor had earlier announced its intention to take important decisions to reverse the decline of the naira in the coming days, resulting in significant losses for speculators.

Acting CBN Governor Folashodun Shonubi made the suggestion Monday during a press conference with reporters at the State House following a meeting with President Bola Ahmed Tinubu at the presidential villa in Abuja.

At the physical black market, the naira rose to around N910 against the greenback up more than 40 naira in a week.

What you should know

Recall that earlier today Nairametrics reported a notable turn of events that sent shockwaves across the cryptocurrency community, Binance, a prominent player in the crypto space, has announced its decision to shut down its fiat-to-crypto payments platform, Binance Connect.

This unexpected move comes amidst a broader slowdown in the crypto market, attributed to underlying structural issues within the digital landscape.