No more N1,220: Naira closes markets margin, set for new week as CBN lifts ban on crypto

The naira fell to N885.88 per dollar in the official Nigerian Foreign Exchange Market, NAFEM, on Friday, December 22, 2023.

According to FMDQ statistics, the indicative exchange rate for NAFEM 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.

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.

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