Business News

Official exchange rate closes week at N1,548.25/$1 as CBN takes action against illicit activities  

The Naira exhibited a positive trend against the US Dollar in the official market, concluding the week at N1,548.25/$1, an improvement from the previous day’s rate of N1,595.11/$1.  

This uptick occurred amidst sustained demand pressures exerting a downward influence on the currency’s value. 

Simultaneously, there was a notable increase in forex turnover, rising by 36.32% to reach $296 million. This surge in trading activity reflects heightened engagement in the foreign exchange market. 

The recent appreciation coincides with the Central Bank of Nigeria’s (CBN) decisive measures against suspected illicit activities involving Bureau De Change (BDC) operators and Binance, a cryptocurrency trading platform. 

Furthermore, the Federal Government imposed a significant fine of $10 billion on Binance, alleging its involvement in exacerbating Nigeria’s forex challenges.  

To narrow the widening gap in the exchange rate, the government plans to allocate $20,000 to each eligible Bureau De Change (BDC) operator nationwide. 

These initiatives are anticipated to infuse much-needed liquidity into the market, thereby aiding in stabilizing the value of the Naira. 

According to data from the NAFEM (Nigeria Autonomous Foreign Exchange Market), where forex is officially traded, the domestic currency appreciated by 3.03% at the end of the week, closing at N1,548.25 to a dollar at the close of business. 

Naijaonpoint reported that the Federal Government has slammed a $10 billion fine on crypto trading platform, Binance, over allegations of influencing the country’s forex crisis. 

The special adviser to President Bola Tinubu on information and strategy, Bayo Onanuga, disclosed this Friday morning in an interview with the BBC. 

According to Onanuga, Binance profited substantially from its “illegal transactions” in Nigeria while the nation suffered huge losses. 

Onanuga claimed that Binance is not registered in Nigeria and has no presence there. He alleged that people used the platform to fix dollar-naira rates arbitrarily; a practice he said negatively impacted the value of the local currency. 

He explained further that the Binance team was already cooperating with the Nigerian government by providing useful information, and had already suspended naira-related transactions on the platform.