The Naira’s value against the US dollar continued to decline in the official foreign exchange market, following the discontinuation of Naira-denominated transactions by Binance. According to FMDQ data, the Naira dropped to N1627.40 per USD on Friday from N1,602.17 on Monday, marking a 1.5% depreciation.
Despite a surge in USD turnover at the official market, amounting to $269.35 million, the Naira has seen a significant decrease in value over the past week. Starting at N1,534.19 per USD on Monday, March 4, the Naira has shed N93.21 in value.
The decision by Binance to cease trading in Naira on March 8, following regulatory pressure from the Nigerian government, has had a direct impact on the Naira’s value. The government began restricting cryptocurrency platforms, including Binance, on February 21, citing concerns about their impact on the Naira in the foreign exchange market.
During the 293rd Monetary Policy Committee meeting, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, expressed concerns about Binance’s activities in the country. He highlighted that $26 billion had been funneled through Binance without proper oversight.
The ongoing regulatory crackdown on cryptocurrency platforms in Nigeria has raised questions about the future of digital currency trading in the country. As the Naira continues to depreciate against the US dollar, the impact of these regulatory measures on the economy remains a topic of concern for investors and stakeholders alike.
