The Nigerian currency losses value in the exchange market

[Mr. Allcrypto]

The Nigerian currency has recently experienced some depreciation in the exchange markets as a result of poor economic stability which has given room for rise in prices of goods and services and also a high cost of living in the country. Currency values can fluctuate due to various factors like economic conditions, inflation rates, and also global market trends etc... It's important to stay updated on the current exchange rates if you're planning to exchange currencies or make international transactions. If you need any specific information or have any questions, feel free to ask...
I wrote an article about inflation recently in a platform and I highlighted the causes of inflation in the country, and also how it strongly affects the cost of living due to the rate at which prices of goods and services where increased.
Currently the economic condition is very poor and the government needs to work hand in hand together with the citizens as well so we can restore balance in the economy.

[Zed0X]

I'm looking at the chart of Naira vs USD and, yeah, that's a sharp decline. What's happening over there? Is there a political turmoil or some insurgency that's causing their local currencies' plunge? That is the only thing I could think of right now that would cause a crash like this https://www.exchange-rates.org/exchange-rate-history/ngn-usd

[Mr. Allcrypto]

Looking at the state of the country now, there are various economic reasons why naira is loosing it values in the exchange matter, and critically looking at the matter you are are right by saying political turmoil is one of the key reasons affecting it, because looking at the country we observed that any te there is a change in government, our currency always losses value, but with time, we hope that everything will become normal if the government work towards that, and also the rate of inflation in our country will reduce....
Shear your points also, so we can enlighten each other about our economy.

[joniboini]

because looking at the country we observed that any te there is a change in government, our currency always losses value,

So you're saying that the new government is not trusted by the investors, hence they pull the plug and try to exit the market as soon as possible? What is the reason tho? Is the new government dictatorial or something? I'm not up to date with the political landscape of Nigeria. As for my country, we just had an election and as far as I can tell there's no significance difference in the market, maybe because most of them predicted the result, or at the very least the possible trajectory of the country in the next five years regardless of who was chosen as the president.

[Mr. Allcrypto]

because looking at the country we observed that any te there is a change in government, our currency always losses value,

So you're saying that the new government is not trusted by the investors, hence they pull the plug and try to exit the market as soon as possible? What is the reason tho? Is the new government dictatorial or something? I'm not up to date with the political landscape of Nigeria. As for my country, we just had an election and as far as I can tell there's no significance difference in the market, maybe because most of them predicted the result, or at the very least the possible trajectory of the country in the next five years regardless of who was chosen as the president.

As of date, the change of government is really affecting Nigeria economy. But with time the government will definitely make ammends across every thing to make sure naira gains it economic strength and value again.

[Agbe]

Right now the currency is gaining more than the dollar. Last two weeks the naira was very weak even in the parallel market but in this week, it is #1460 to $1 but even at that I am not happy with the exchange rate because when the former president Goodluck Ebele Jonathan was there, the dollar rate was very small and it was #150 to $1. And now we don't even know whether this new government will reduce the exchange rate to a bearish minimum rate in which everyone can make use of it. According to the government, Binance is one of the exchange that making the naira to be devalued so they have arrested 2 Binance staff and fine Binance with #10m.

[Don Pedro Dinero]

Now I understand why bitcoin and cryptocurrencies are so popular in Nigeria:



When the government devalues the currency by leaps and bounds, even much faster than the dollar or the euro devalues, it is normal for people to seek refuge in other currencies or assets to protect the value.

Right now the currency is gaining more than the dollar.

Yes, well, but the long-term trend is clear.

[Sim_card]

Now I understand why bitcoin and cryptocurrencies are so popular in Nigeria:



When the government devalues the currency by leaps and bounds, even much faster than the dollar or the euro devalues, it is normal for people to seek refuge in other currencies or assets to protect the value.

Yea, it is better to keep the value of your funds in bitcoin or in USD if you are living in Nigeria, because of the low value of Naira to USDT. The problem is caused by corrupt leaders, who are only after stealing the country's resources to enrich themselves, and they lack the knowledge on how to grow the economy, and make life easy for the citizens. However, the value of dollar have dropped recently, and I don't know how long this will last.

[Cryptsafe]

What do you expect when a nation is always at the consuming side and stressing only on importation. To the least, toothpick is being imported. If to that extent, what do you think would become of a nation that can not produce anything for exportation at a large commercial quantity.
Secondly, the leadership is bereft of ideas to lead the nation. They fail to implement good economic policies that would improve the nation economy. Rather they choose to clamp down on crypto currency exchange and enthusiast for what they themselves could not properly handle.

[Aanuoluwatofunmi]

As long as the country is not in support for the use of cryptocurrencies, the government will always fight against the user and caution the banks from engaging any crypto related activities like trading, that is also why we need to be more sensitive from how we make use of some of these centralized exchanges because the government will always fight back on them, while loss in economy is not because of the exchange rate, inflation has already been the order of the day long time ago, there is more need for increased productivities for a currency to strong value in the global market.

[Sim_card]

As long as the country is not in support for the use of cryptocurrencies, the government will always fight against the user and caution the banks from engaging any crypto related activities like trading, that is also why we need to be more sensitive from how we make use of some of these centralized exchanges because the government will always fight back on them, while loss in economy is not because of the exchange rate, inflation has already been the order of the day long time ago, there is more need for increased productivities for a currency to strong value in the global market.

Nigeria government is not tackling the problem that is causing inflation which leads to the value of dollar to increase over Naira. Instead, they are telling all exchanges to delist Naira from their exchange, and the EFCC have also told airports not to use dollars again but Naira. Will this revive our dying currency to start gaining value over dollar, or the focus on production should be handled urgently.

[joniboini]

Instead, they are telling all exchanges to delist Naira from their exchange, and the EFCC have also told airports not to use dollars again but Naira. Will this revive our dying currency to start gaining value over dollar, or the focus on production should be handled urgently.

Some news also suggests they think crypto or P2P is the culprit for this forex manipulation if I recall correctly. Sounds like the deflation is worse than I thought if they keep bleeding like this. I'm not an expert by any means but if there's no reason to invest in the country because they don't produce anything, I think there's no reason for the market to value their fiat currency that much. Sounds like there are complex issues and the only way to untangle the mess is by finding the right person to steer the government, which is probably a hard thing to do[1]. CMIIW.

[1] https://punchng.com/why-naira-continues-to-lose-value/

[Sim_card]

Instead, they are telling all exchanges to delist Naira from their exchange, and the EFCC have also told airports not to use dollars again but Naira. Will this revive our dying currency to start gaining value over dollar, or the focus on production should be handled urgently.

Some news also suggests they think crypto or P2P is the culprit for this forex manipulation if I recall correctly. Sounds like the deflation is worse than I thought if they keep bleeding like this. I'm not an expert by any means but if there's no reason to invest in the country because they don't produce anything, I think there's no reason for the market to value their fiat currency that much. Sounds like there are complex issues and the only way to untangle the mess is by finding the right person to steer the government, which is probably a hard thing to do[1]. CMIIW.

[1] https://punchng.com/why-naira-continues-to-lose-value/

Exactly, no one wants to sacrifice to fix thing in the country because that was never their intention from the beginning when they were fighting for power. The government is just doing things like people that don't know what they are suppose to do and their decisions are affecting the youths, the citizens and the economy of the country. Our refineries are bad, they cannot fix them, instead they import our crude and bring back few byproducts, just because the person in charge of that contract is benefiting a lot and they share the money amongst themselves. That will make them even happy that the refineries are bad, and they are busy blaming exchanges that are innocent,whereas it is the government that is manipulating the Naira through their fraudulent actions and corruption.

[Stompix]

[1] https://punchng.com/why-naira-continues-to-lose-value/

That's a really bad article, is it from the opposition?

Banks pay in dollars instead of naira to recipients of Western Union remittances.  An estimated $50bn, some say, is driving an underground currency speculative market.

This thing doesn't matter, remittances are paid in the currency they are sent, and those receivers will have to switch from USD to naira at one point anyhow, if they get nairas at the office or they exchange those dollars when they need food it doesn't matter, it's a net positive!

has continued to enhance the promotion of imports to the detriment of local production, thereby stifling exports and causing a shortfall of naira receipts on the sale of dollars.

This is again really bad and completely wrong, it would have the exact opposite effect!

Each cycle of rate hikes lowers productivity and induces inflation.

No, no and no again! Rate hikes cut inflation don't induce it, seriously every country in the world hikes rate to cut inflation, we know from decade of the CB of Japan that wanted!!! inflation the only way to induce it is negative rates!

Across the African continent, currency depreciation is pervasive. The francophone countries, with their French-supported CFA franc, are sitting on an economic time bomb. Their currency is stupendously overvalued.

Again, really stupid take!
The author has somehow decided that a currency pegged to the euro is overvalued, that would mean the whole EURO currency is overvalued, seriously? Then Denmark is also in trouble because their currency among other sis also pegged to the Euro.
Should we compare Denmark with Nigeria?

Really, really bad article, I am sure it is paid to make things look completely different than they are, if someone would come up with an essay like that he would get to repeat the year!

[dkbit98]

I heard that Nigerian currency naira is now worth less than one bitcoin satoshi unit so I wanted to check and confirm if that is true.
U used bitmover website tool bitcoindata.science and it showed me that 1 satoshi is worth 0.95 NGN.
1 Bitcoin is worth 94580089.26 NGN and that is $67535 USD
Can someone from Nigeria community confirm if this is true today?


https://bitcoindata.science/bitcoin-units-converter