Naira Appreciates at Official Market, Falls at Black Market as FG Gives New Order to Crash Dollar

Naira Appreciates at Official Market, Falls at Black Market as FG Gives New Order to Crash Dollar

  • The Nigerian currency recovered some of its lost value against the US dollar in both the black market and the official markets
  • This happened after the federal government of Nigeria deployed security agencies against foreign exchange speculators
  • The FG has now issued a new order to the NCC to block Binance and other online platforms where Nigerians buy and sell dollars journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

The naira appreciated against the US dollar in the official foreign exchange market on Wednesday, February 21, 2024, after falling to a record low.

naira to dollar exchange rate as FG sends EFCC to raid street traders
Nigerian currency gets worse despite EFCC's raid on black market traders Photo credit: Bloomberg/Contributors
Source: Facebook

Data from FMDQ Securities showed that at the Nigeria Autonomous Foreign Exchange Market (NAFEM), the naira closed at N1542.5$ on Wednesday.

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This was an improvement from the N1,621.41 exchange rate record set on Tuesday, February 21, 2024.

Participants carried out a total of $172.14 million in transactions during the trading session on Wednesday at the official market.

CBN data revealed naira maintained stability against the pound sterling and the euro in the spot market on Wednesday, exchanging at N2,023.64/£1 and N1,729.36/€1, respectively.

Naira to dollar at the unofficial market

It was a mixed performance for the naira against the US dollar in the two unofficial markets.

In the Peer to Peer segment, the Nigerian currency improved its value by N42 against the Dollar yesterday to sell at N1,760/$1 compared with Tuesday's closing value of N1,802/$1.

But in the black market, the Nigerian currency suffered another loss, N70, against the Dollar to settle at N1,885/$1, in contrast to the preceding day's price of N1,815/$1.

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FG moves against Forex speculators, black market operators as naira Hits N1,900 per dollar

FG issues new order

Meanwhile, to curb the Naira's free fall, the federal government has directed the Nigeria Communication Commission to instruct mobile service providers to block access to Binance and other platforms such as Forextime, OctaFX, Crypto, FXTM, Coinbase, and Kraken in Nigeria.

This decision follows the formation of a task force that has conducted strategic attacks on Bureaux De Change (BDC) operators across several locations in the country to influence the market.

CBN governor plans gateway bank for naira

Earlier, reported that the CBN is set to introduce a singular foreign currency (FCY) gateway bank.

The apex bank said the move would centralise all correspondent banking activities and facilitate international trade and economic activities.

The CBN also announced a plan to streamline the number of BDC operators in Nigeria, improve the nation's forex inflows and stabilise the Naira.

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Tinubu unveils next move to crash dollar at official, black markets


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