Latest CBN News & Dollar to Naira Update Today 23 February 2024 can be accessed below..
In this latest update on the Central Bank of Nigeria (CBN) and the Dollar to Naira exchange rate for today 23rd feb 2024 , we delve into the significant developments affecting the Nigerian economy. From the impact of FX crises , cement prices , CBN Restricting Nigerians from accessing Binance, and the challenges faced by the Naira in the foreign exchange market, we cover it all.
Dollar to Naira Black Market Exchange Rate Today 23 Feb 2024
| Dollar To Naira | Black Market Rate Today |
|---|---|
| Buying Rate | ₦ |
| Selling Rate | ₦ |
Naira Appreciates at Official Market, Falls at Black Market As FG Gives New Order To Crash Dollar
On Wednesday, February 22, 2024, the Nigerian Naira experienced a notable appreciation against the US dollar in the official foreign exchange market, reversing from a historic low. According to data from FMDQ Securities, the Naira concluded the day at N1542.5 per US dollar at the Nigeria Autonomous Foreign Exchange Market (NAFEM), marking a significant recovery from Tuesday’s exchange rate of N1,621.41 per US dollar.
The official market witnessed transactions totaling $172.14 million during Wednesday’s trading session, indicating active participation. Furthermore, the Central Bank of Nigeria (CBN) data showed that the Naira remained stable against major currencies like the Pound Sterling and the Euro, with exchange rates of N2,023.64 per British Pound and N1,729.36 per Euro, respectively.
In the unofficial markets, the Naira’s performance against the US dollar was mixed. The Peer to Peer segment saw an improvement, with the Naira gaining N42 to close at N1,760 per US dollar, compared to N1,802 per US dollar on Tuesday. However, in the black market, the Naira depreciated by N70, closing at N1,885 per US dollar versus the previous day’s rate of N1,815 per US dollar.
To address the Naira’s volatility, the federal government has mandated the Nigeria Communication Commission to block access to cryptocurrency and forex trading platforms, including Binance, Forextime, OctaFX, Crypto, FXTM, Coinbase, and Kraken. This action is part of broader measures to stabilize the currency, including strategic interventions targeting Bureaux De Change (BDC) operators across the country.
Additionally, the CBN is planning to introduce a singular foreign currency gateway bank to centralize correspondent banking activities, which aims to enhance international trade and economic activities. The CBN is also considering a reduction in the number of BDC operators to bolster the nation’s forex inflows and aid in stabilizing the Naira, as gathered by GoldenNewsNg.com
IMF Predicts Next Naira to Dollar Exchange Rate in 2024, FG Hopes To Achieve N800/$1
The International Monetary Fund (IMF) has forecasted a potential rise in the Naira to US dollar exchange rate, reaching as high as N2,081/$1 in the official foreign exchange market by the end of the year. This projection, highlighted in the IMF’s February 2024 Post–Financing Assessment and Staff Report, follows the Nigerian federal government’s reaffirmation of its commitment to stabilizing the Naira’s value through various policy measures initiated by both the Central Bank of Nigeria (CBN) and the federal government.
The IMF’s report suggests a possible 35% depreciation of the Naira, which could result in an inflation peak of 44%. The institution cites insufficient monetary policy tightening and ongoing pressure on the Naira as contributing factors. Furthermore, the depreciation is linked to a lack of local production and the recent liberalization of commodity imports, as per Vanguard’s coverage.
In response to these challenges, the IMF has recommended the adoption of a comprehensive macroeconomic and growth strategy. This strategy would involve collaboration with development partners and include aggressive monetary tightening, fiscal adjustments for macroeconomic stability restoration, and climate adaptation measures implementation. The report also notes that domestic demand has weakened significantly due to a sharp decline in real incomes, with investments in the oil sector likely to be hampered by rising costs and production declines.
Amidst these concerns, President Bola Tinubu has revealed the federal government’s intention to generate at least $10 billion to enhance foreign exchange liquidity. This effort aims to stabilize the Naira and foster economic growth, with the government targeting an exchange rate of N800/$1 as the foreign exchange rate benchmark for the 2024 budget, to mitigate the risk of a substantial fiscal deficit.
Recent reports from Legit.ng indicate that the Nigerian currency has seen some recovery against the US dollar in both the black market and the official market. This improvement follows the deployment of security agencies against foreign exchange speculators by the Nigerian government, which has also instructed the Nigeria Communication Commission (NCC) to block access to Binance and other online platforms utilized by Nigerians for dollar transactions.
FX Manipulation: Nigerians Unable to Access Binance
GoldenNewsNg gathered that the Nigerian government has recently imposed restrictions on access to Binance, the world’s leading cryptocurrency exchange platform.
This move, aimed at curbing currency speculation activities, has disappointed and frustrated Nigerian users. Binance clarified that its platform is not designed for currency pricing, emphasizing its role in cryptocurrency transactions.
Many Nigerians took to social media, particularly X (formerly Twitter), to express their dissatisfaction with being unable to access the Binance website. The Nigerian Communications Commission (NCC) reportedly directed telecom firms to block access to Binance and other cryptocurrency websites. Although the directive was received on Wednesday, there is no specified timeline for its implementation yet, according to a source in the telecom industry.
The government’s decision appears to be motivated by concerns about the manipulation of the foreign exchange market. Before the restriction, Binance’s spot rate was approximately N1,850/$. In response, some users have explored bypassing the restrictions using virtual private networks (VPNs) and web filters.
While the government’s action reflects an attempt to address cryptocurrency-related concerns, it has drawn criticism and raised concerns among Nigerian cryptocurrency enthusiasts. The situation is evolving, and affected users are closely monitoring developments.
Here are some user reactions:
- @quintenfahey: “NCC’s restriction on Binance in Nigeria has led to suspension, but users are finding ways to bypass with web filters and VPNs.”
- @khadydave: “@binance why is the app not working in Nigeria? Nigerians are panicking. Can you address the issue? @BinanceHelpDesk”
- @topgodfather101: “Binance is inaccessible in Nigeria without VPN. The government believes it will strengthen the naira, but critics argue otherwise.”