The Naira experienced a significant depreciation, reaching a record low of N1,830 per dollar in the parallel market, commonly known as the black market.
This marks a 7.10% decline compared to the previous day’s closing rate of N1,700. The continued devaluation of the Naira in the black market is occurring amidst economic challenges and a surge in inflation, with the inflation rate reaching 29.90% in January 2024, as reported by the National Bureau of Statistics (NBS).
Despite efforts by the Central Bank of Nigeria (CBN) to bolster the supply of foreign exchange (forex), the decline of Naira persists.
The Naira settled at N1,876.50/$1 in the cryptocurrency market as of 12 pm. The cryptocurrency trading platform Binance recently limited trading on the Nigerian currency for the USDT stablecoin to address unusual currency movement and protect users.
Unconfirmed reports suggest that the CBN and other government agencies ordered Binance to set a cap on Nigerian traders selling USDT.
Binance, however, emphasized that its platform is market-driven and not intended to be a proxy for currency pricing in Nigeria.
