Naira ends three-day winning streak against the dollar after Binance shuts down feature, leaves Nigeria

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.

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 all 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.