PANews reported on May 24 that Nigeria has intensified its crackdown on Naira exchange rate speculation, banning street foreign exchange trading and imposing strict new requirements on Bureau de Change (BDC) operators. The Central Bank of Nigeria has significantly raised the capital requirements for nationwide BDCs from 35 million Naira to 2 billion Naira (approximately $1.4 million) and increased the capital requirements for state-level BDCs to 500 million Naira. This measure aims to regulate the foreign exchange industry and prevent it from undermining the value of the Naira.

According to FMDQ data, the Naira depreciated by 1.6% on Thursday, with an exchange rate of 1,486 Naira to the US dollar, while the street trading rate was 1,515 Naira. The Central Bank of Nigeria stated that foreign currency trading on the street is prohibited and that BDCs must conduct transactions within their offices.

This move follows the previously announced ban on peer-to-peer (P2P) cryptocurrency transactions, as Nigerian authorities believe cryptocurrency platforms exacerbate the volatility of the local currency. Since the relaxation of foreign exchange regulations last year, the Naira has depreciated by approximately 68% against the US dollar.