The naira value has been falling and falling over the month. Pushing the country closer to recession, the rates have swollen to 309/usd even on the interbank rate. Naira has become much more unstable since the last time we analysed it. Although oil revenue has jumped up considerably, many are simply cashing out and purchasing the dollar and other currencies. For those left holding fiat it may be time to but Bitcoin as a source of money.
The Naira Markets
This week has started off miserably for Nigerian economics. Black market rates of the naira and usd pair have risen by 3 from 375/USD to 378/USD. This small but quick jump looks set to repeat many times as the cycle repeats itself. The current rise in USD strength has been linked to the fact that the banks are forced to disclose their trades. This comes after the CNB order restrictions on the amount of foreign exchange a company could handle etc all with the aim of strengthening the naira. Sadly it seems in the long run the Nigerian currency is set to devaluate further as its international power has become limited.
Is It Time To Convert To Bitcoin ?
To conclude the rate of the naira hits lows not seen in over 6 months among Nigerian banks themselves. Despite efforts to stabilise the currency and restrict foreign exchange, the CNB has failed to stem the bleed. At the current rate the currency is set to plunge further as the international confidence is just not there. This has been one of the major reasons behind increasing Bitcoin use. Not only have Bitcoin prices remained stable but exchanges such as NairaEX offer premium rates for your naira. Whether you use Bitcoin on a daily basis or rely on it for remittances the naira has already begun its decline with targets set around 324/usd for this month.