The Nigerian naira has been a hot topic in the news recently. Pushing the country closer to a state of financial ruin and recession. The central banks policies and scarcity of assets such as the dollar in the foreign exchange market have pushed the Naira further towards the 400 zone.
“Most investors would like to see a more liquid FX market before resuming purchases of local assets,” said Samir Gadio, head of Africa strategy at Standard Chartered Bank.
Fingers have been pointed in all directions including the interbank which saw a huge demand of USD dwindling supply. Ultimately this raised prices of the Dollar much above usual rates. The parallel market suffered the most this week as prices have seen a rise of over a 100 Naira from 268 to 375 currently. In combination with the effect of a whale trading as over $300k was traded in one transaction. Leaving a void in liquid currency, the central bank’s failure to replenish lead to further damage being done. At this rate the effects of financial policy combined with corruption under Buharis government will easily push the Naira further as no other support seems to be coming on an international level. On parallel markets we could see prices hold around the 370 mark as chaotic selling slowly resides…
All may not be doom and gloom as the use of Bitcoin increases. Used to protect assets and retain value, Bitcoin stability has given civilians an alternative store of value. You too can transfer some Naira to Bitcoin via the NairaEX exchange. Offering some of the best rates for your naira you can expect your Bitcoin to arrive in a matter of hours. Starting off with small amounts is the safe way to experience the benefits of Bitcoin which was remained stable above the $650 mark for nearly a month at the time of writing.