Naira rises to 475 against dollar after crypto ban

The Nigerian currency strengthened against the dollar on Thursday at the parallel market for the second day after the Central Bank of Nigeria prohibited regulated institutions from dealing in cryptocurrencies or facilitating payments for cryptocurrency exchanges.

The naira rose to 475 per dollar at the parallel market from 478 on Wednesday and 480 on Tuesday.

It remained stable at 400 per dollar at the Investors’ & Exporters’ Foreign Exchange Window on Thursday.

The local currency has been fluctuating in recent months, plunging on Nov. 30 to 500 per dollar at the parallel market, its lowest level in more than three years. It, however, rose to 470/$1 on Jan. 7, 2021, but started falling the next day.

The CBN has kept the official exchange rate at N379/$1 since August, when the naira was devalued for the second time. It was first devalued to 360 in March from 306.

Last Friday, the apex bank ordered banks and other financial institutions to close all cryptocurrency accounts – a development that has continued to draw widespread criticism.