The Nigerian unofficial market rate appreciated by about 1% to close at N1,610 to the dollar on Thursday, while the NAFEX rate fell by 1.18 per cent to close at N1,566.43 to the American dollar.
Binance, the world’s largest cryptocurrency exchange by trading volume, will stop offering any services related to the Nigerian naira (NGN) by March 8, 2024, in response to government pressure.
Before NGN services are discontinued, users are advised to trade their NGN assets, withdraw their Naira balances, or convert Naira into cryptocurrency, according to the notice that Binance sent to its customers.
The yellow-coloured exchange stated it will no longer support naira deposits as of right now and advises users to take their NGN money out, sell their NGN assets, or convert their NGN into digital assets.
All NGN balances in user accounts will now be converted to USDT (Tether), as per the company’s announcement to users. N1,515.13 per USDT will be the automatic conversion rate for any remaining naira withdrawals, which will end by March 8th.
To stop what it views as ongoing manipulation of the foreign exchange market and unlawful money transfers, the Nigerian Communications Commission, acting on behalf of the government, recently blocked the online platforms of Binance and other cryptocurrency companies.
The executives of the foreign company were supposed to appear before the House Committee on Financial Crimes this week, but they sent attorneys to represent them instead.
This week, agents of the Economic and Financial Crimes Commission were dispatched to arrest Bureau De Change operators at the Country’s Federal Capital Territory and other major cities.
Recommended reading: Binance disables the naira feature on its P2P market
Fed Chair Powell added to expectations in his testimony on Wednesday, by indicating that rate cuts will probably be necessary later this year if the economy expands broadly as anticipated.
The haven currency was under additional pressure due to the persistently positive outlook for the risk-averse universe. Markets will be more focused on Friday’s US labour report release, as lower-than-expected February data could further depress sentiment and put more pressure on the dollar.
Forex traders speculate on the U.S job report as the market projects US employers added 200,000 jobs last month,
The staggering 353,000 job gains in January are far greater than this total. Compared to the job reports from previous months,
Friday’s report on employment could offer forex traders a more accurate picture of the state of the labour market.
Due to returning and striking autoworkers, writers, and actors, there were some hiccups in the reports for October and November. January and December in particular probably overstated growth.
However, the anticipated monthly total for February would still be respectable. It would carry on a historically significant period of labour market expansion.
