Naira plunges after 9 Nigerian Banks Banned From Forex

The Nigerian Naira closed at an all-time low of 412 per dollar on the black market on Friday — a drop of 3 Naira from Thursday’s close.

The Central Bank of Nigeria suspended nine commercial banks from forex transactions on Tuesday for not transferring around $2.3 billion of deposits for two state oil and gas companies, Nigerian National Petroleum Corp. and Nigeria LNG Ltd., to the government’s Treasury Single Account (TSA). CBN on Wednesday lifted it’s ban on the United Bank for Africa (UBA) , leaving 8 other banks banned from interbank forex market.

The local currency continues to depreciate due to falling government revenues and the latest CBN restriction on these banks from accessing foreign exchange in interbank market have pushed the dollar up because some bureaux de change operators have been finding it difficult to access their forex with the banks.

Bitcoin’s popularity continues to grow in Nigeria, as more Nigerians are using it to access the foreign exchange market. Bitcoin price peaked at 240,156 Naira for buying and 225,689.10 for selling to Naira at NairaEx –  Nigerian Bitcoin Exchange.

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BTC Nigeria Editorial