The foreign exchange market currently trades one USD for N415.619 — the latest Naira value before the foreign exchange market closed its Investors and Exporters (I&E) window. Still, the crypto market exchange rate traded the USD per Naira differently, after the custom forex I&E exchange window closed its market.
The P2P network in the crypto market reportedly exchanged the USD for Naira significantly higher than the forex market exchange rate. The P2P exchange rate was traded at N576 per $1 on the previous Friday. This marks the second time the crypto market trades higher than the forex market in 2022. March 10 recorded the initial occurrence of the significantly high exchange rate at N575 per dollar.
The Nigerian Business Development Companies reported a much parallel high exchange rate at N588 per $1 — the parallel point at which the forex market closed. It is worth noting that the parallel exchange rate at which the market closed is similar to the previous forex trading session.
The CBN invokes its regulatory system infuriated by the irregularities in the Nigerian ecosystem of forex traders. Regards to the beef the CBN exhibit for the crypto market influences its regulatory authority to consort external officials to regulate the forex market according to the foreign currency.
The CBN strategic system schemes to stabilize Naira’s current exchange rate value despite Naira’s inability to surpass its bearish growth in the forex market. Although the Naira experienced an increased market capitalization at 0.07%, equivalent to a $39.63bn. Still, the USD per Naira exchange rate is not encouraging nor is it contextual to write melodies about the local currency.
Relating to the financial grudge the CBN purges the Nigerian forex traders for embracing the crypto market for financial inclusion rather than investing in the commercial banking industry on a local currency trade. The CBN reportedly channeled its apex regulation adopting the Nigerian Autonomous Foreign Exchange Rate Fixing mechanism aka NAFEX Policy during the I&E window to stabilize the exchange rate at N415.619 per &1 closing the Friday.
The USD per Naira exchange rate at N415 in the I&E FX window closure recorded a significant high during the intraday trading session at N444 per $1. The Naira sold trades at N410 per $1 during the intraday trading session prior to closing the trading session at the current exchange rate.
However, the crypto market collectibles tokens are reportedly developed to remain responsive to trading against other foreign currencies. The crypto market capitalization is valued at $1.995 trillion. While the forex market traded the sum of $112.03 million in the I&E FX window per the CBN daily preview.
The crypto market experienced a lucrative trade session gaining a 0.68% market capitalization — it is divisible by the combination of active tokens trading in the crypto market. The flagship token, BTC, increased by a 0.5% exchange rate to $43,673.79 per dollar. While ETH increased by 1.3% exchange rate at $$3,269 per dollar. Then again, Solana joined the list of gainers in the Friday trade session — increased by 2.33% exchange rate at $121.2275 per dollar.
Naira’s current market capitalization consistently inflates above N400 per dollar. The Nigerian digital economy should serve as another revenue stream to stabilize Naira’s bearish growth in the forex market. Likewise, eNaira’s growth analysis remains dormant and less responsive to gaining token value per increased capitalization. The CBN regulatory system should therefore amend its policy featured against the crypto market to attract other significant financial managers and investors for a further monetary incentive.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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