No more N1,220: Naira Closes Markets Margin, Set for New Week as CBN Lifts Ban on Crypto

• The naira closed at N885.88 per dollar on Friday, December 22, 2023 according to official record by the NAFEM
• The amount depicted a N23.97 depreciation from the N861.91 per dollar which it closed the previous day
• The official and parallel market rates narrowed to N339.12 per dollar at the end of the day according to reports.

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The naira fell to N885.88 per dollar in the official Nigerian foreign exchange market on Friday, December 22, 2023.

According to FMDQ statistics, the indicative exchange rate for the exchange market increased from N861.91 per dollar on Thursday to N885.88 per dollar, suggesting a N23.97 currency devaluation.

The intraday low for the window was N700 per dollar, while the intraday high stood at N1,248 per dollar. This resulted in a N548 per dollar margin.

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Similar trends were seen in the black market, where the value of the naira dropped from N1,220 to N1,225 per dollar.

Market margin closes

The gap between the official and parallel market exchange rates decreased to N339.12 per dollar on Friday from N358.09 per dollar on Thursday, according to Vanguard.

The volume of dollars traded on the window fell by 49% to $92.16 million from $181.3 million traded on Thursday.

Meanwhile, the CBN recently lifted its restrictions on cryptocurrency transactions in commercial banks.

This comes two years after the CBN banned banks from crypto-related transactions in 2021, citing money laundering and terrorism financing concerns.

The regulator has now reversed that ban, explaining that global trends have shown the need for crypto regulation instead of a total ban.

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Analysts expect that the move will reflect on the performance of the naira for the new week.

Nigeria emerges most active crypto country

Legit.ng reported that despite the challenging period in the cryptocurrency market known as the crypto winter, Nigerians have consistently demonstrated unwavering enthusiasm and curiosity regarding Bitcoin, Ethereum, and other cryptocurrencies.

Nigeria reportedly emerged as the country with the most notable interest in the three search terms as citizens continued actively participating in purchasing, trading, and exploring information about Bitcoin.

During the ongoing period of volatility in the cryptocurrency market, often referred to as the "crypto winter," market participants across the globe have adapted in diverse ways.

Source: Legit.ng