Naira Ends 3-Day Winning Streak against Dollar after Binance Shuts Down Feature, Leaves Nigeria
- The naira has ended its three-day rally against the dollar and depreciated below N1,600 per dollar
- The Nigerian currency lost about 4.26% in the official market to trade at N1,634 per dollar on Tuesday, March 5, 2024
- The local currency also depreciated in the black market, falling 1.84% per dollar at N1,600 per dollar
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Legit.ng’s Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade.
The Nigerian currency fell against the US dollar on Tuesday, March 5, 2024, after three consecutive days of gains.
The naira fell by 4.26% to N1,602,43 per dollar compared to the N1,534.19 traded on Monday, March 4, 2024.
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Binance announces end to Nigerian operations
The depreciation comes amid an announcement from the cryptocurrency exchange platform Binance that it will cease operations in Nigeria, thereby turning off the naira feature.
The Tuesday depreciation of the naira is the first in three days after the naira rallied against the US greenback following a series of reforms introduced by the Central Bank of Nigeria (CBN).
The apex bank resumed the sale of weekly forex to Bureau de Change (BDC) operators in the country, which analysts attributed to the excellent performance of the naira against the dollar.
Data from NAFEM shows that the naira depreciated by 4.26% at the end of trading, closing at N1,602.43 per dollar.
Naira falls in markets despite CBN interventions
The depreciation means the naira lost about N68.24 compared to the N1,534.19 traded on Monday, March 4, 2024.
The local currency recorded an intra-day high of N1,625 per dollar and a low of N1,450, representing a disparity of N202.40 per dollar.
Forex turnover at NAFEM stood at $291.78 million, representing a 63.26% rise compared to the previous day.
Forex turnover at the official exchange rate averaged about $200 million in the past week as trading continues to accelerate in the official market.
The naira also depreciated on the parallel market, trading at N1,630 per dollar, representing a 1.84% decline compared to the previous day’s rate of N1,600.
The naira’s decline comes as Nigeria battles liquidity challenges caused by low exports and low domestic production.
Dollar crashes against Naira on Binance
Legit.ng reported that the US dollar has crashed against the Nigerian currency, the naira, at the crypto peer-to-peer platform, Binance.
Data from the platform showed that the dollar crashed at around 8 am on Wednesday, February 28, 2024, trading as low as N1,415 per dollar from the N1,606 per dollar it sold in the last 24 hours.
Some traders on the platform reportedly quoted above N1,500 per dollar as trading intensified.
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Source: Legit.ng
