Naira drops to N888/$1 on Binance

The exchange rate between the naira and dollar fell over to N888/$1 on Binance a crypto platform.

This depreciation comes despite a temporary convergence achieved through the Central Bank of Nigeria’s (CBN) recent actions.

Currency restrictions have previously been identified as a major hurdle for foreign investors looking to invest in Nigeria, the largest oil producer in Africa.

While the CBN’s decision to ease the currency peg was intended to address this issue, it has not been successful in meeting the demand for dollars.

Consequently, businesses have turned to informal sources for acquiring foreign exchange, undermining the CBN’s efforts to narrow the gap between official and black-market rates.

Currency Restrictions Hamper Investment

Initially, the CBN had planned to allow free trade until the currency reached market-relevant levels. However, concerns about potential inflation arising from devaluing exchange rates have prompted market interventions to avoid substantial currency casualties.

As a result, the naira’s devaluation by N98, which arose yesterday, has reopened the gap with the official rate, further worsening the situation.

Edited by Damilola Adeleke

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