Nigeria Vs Crypto - The Battle just got tougher!
Nigeria Vs Crypto - The Battle just got tougher!
Naira crashes to N710 per dollar!.... WHAT IS GOING ON!!!
I'm not about to start a rant about the incompetence of the Nigerian administration because it is pointless and I have done it many times already.
The number one trend in Nigeria at the moment is that the US dollar which was trading for about 500 Naira per dollar is now up to 700! Crazy right?
A lot crazier is the fact that 7 days ago, it was 640 per dollar. What happened? What is going on? What does this mean to Nigerians who already have dollars?
Nigerians Accumulating Crypto is killing the Naira Value
Nigeria already suffers from operating a multiple exchange rate system dominated by an official rate, which is tightly managed by the Central Bank
of Nigeria. Just like I included in my last post, We have a bank rate that is different from black market rates. Yes! The black market is unauthorized and has a big disparity with the official rates.
Crypto USDT rates follow the black market rates!
1$ = N434 official rate
1$ = N700 (Black market rate)
1$ = N710 (Crypto rate)
62% difference!
According to Bloomerang;
the crypto exchange rate, has emerged as Nigerians increasingly accumulate the digital asset due to scarcity of the local currency from official sources compounded by three devaluations since 2020.
More people are buying cryptocurrencies because they are losing confidence in the naira, Aminu Gwadabe, president of the Association of Bureau de Change Operators of Nigeria, said by phone. “The USD rate on the crypto floor is used in determining the value of the local currency,” Gwadabe said.
Nigeria financial institutions are currently banned from crypto-related transactions However, through p2p transactions, Nigerians have been actively trading crypto and are ranked at no 1 in Africa. Today, I was about to write about reasons why the Nigerian government has to lift the ban however with the situation on the ground, I doubt they would even think of that again.
Tell me what you think? Would the value of one dollar get to 700?
I probably wrote this too soon. It took less than a week to get to this price. And according to boomerang, Nigerians have been doing a lot of trading on Binance.
The Binance platform shows Nigerians had conducted $103,691 of trades in digital currencies in the 24 hours to 10.36 a.m. local time in Lagos on Wednesday. Nigerians traded $185 million of Bitcoin on the platform in the first three months of the year, accounting for a quarter of transactions in the period on Paxful, a crypto trading platform.
CBN Tries to Stop the Bleed!
Buying dollar is now illegal..... Except for certain purposes like travel, School fees, and things the banking sector can monitor. There is also a limit of $4000 on these transactions. I've been doing a lot of research on this (don't ask me why), and I have noticed how people are taking advantage. The whole circle Arbitrage
is crazy...
I haven't found one yet as I don't work in the bank, but yeah people are buying a dollar for #434 and selling for #700 right now.
In Conclusion...
Hive offers a way to earn in dollars. Just imagine an increase in HBD and dollar value in the same week. Congratulations to Nigerians who enjoyed both increases.
It would be so crazy if within a month, I write how the value of dollar has gone up to N1000!
What do you think? Is crypto to be blamed?
PS: The CBN governor blamed an exchange app for the increase from 500-600, it's been months since the app was banned... What an Irony!
I am @samostically,I love to talk and write about chess because i benefited alot from playing chess. sometimes i share my thoughts on life in general and i write about my love for hive!
I love to engage with others and i love communication.I believe life is all about staying happy and maintaining peace.
♟♟♟♟♟♟♟♟♟
Reference Article - Bloomerang
Posted Using LeoFinance Beta
https://twitter.com/samostically/status/1552365406358278145
The rewards earned on this comment will go directly to the people( @samostically ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
what a messy situation! Cryptos while a destabilization force for government money can still lead the way for prosperity of a nation. It's just a question of being bold enough to leave the past behind; of course power structures want to keep the legacy system in place
@tipu curate
Upvoted 👌 (Mana: 30/40) Liquid rewards.
I believe we are heading towards 1k/$ now.
It's a sweet-bitter experience tbh.
Posted using LeoFinance Mobile
I saw it headed for 1k at the beginning of the year, although that's sounds sad but you ve got to see how far the mess goes, like we ve been sold off.. and this is just a repercussion effect. If care is not taken.. hmm
If we save in dollars or naira, all Nigerians would be affected by inflation.
We only hope for the best of the country. It may likely go to 1000naira/$ before the year runs out.
Now, I see the reason why the application that I use to buy dollars online stopped working shortly after they announced their dollar card. It is so annoying!
Yes so annoying. Fuel would be the first thing that would go so high!