Nigerias eNaira Wallet Nears 500000 Downloads Website Naira Weakens as Cryptocurrency Markets Boom in Nigeria

Naira Weakens as Cryptocurrency Markets Boom in Nigeria

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-The Nigerian fiat currency Naira falls as Nigerians flock to buy cryptocurrencies as a hedge to save assets as Naira weakens, per reports.
-Nigerians accumulating cryptocurrencies to shield assets against a weakening naira have contributed to a slump in the fiat currency to a record low.
-Abubakar Mohammed, an operator at the ABCO, states, Nairas position to be at N670/$1 on Wednesday.
-As against this, Nairas price of 424.34 in the official spot market at 9:22 a.m. local Lagos time records a 58% fall below the black market rate.
-The Central Bank of Nigeria had put a ban on banks cryptocurrency transaction participation in February 2021.
-But Nigerian crypto users now use Paxful and LocalBitcoin for cryptocurrency trading in dollars.
-Paxful P2P exchange, in 2022s initial 3 months, Nigerians conducted Bitcoin transactions totalling a whopping $185 million.
-Binance Global Limited data reveals Nigerians 24-hour digital currency trades were $103,691 until 10:36 a.m., per local Lagos time on Wednesday.
-As a result, the demand got sent to the black market. The Nigerian Senate president says the policy contributed to the excessive scarcity of forex in Nigeria.
-But its black market and crypto exchange rates are luring Nigerians. The reasons being the scarcity of Naira and a three-time Naira devaluation since 2020, courtesy of the COVID-19 pandemic. A fallen confidence in Naira motivates Nigerians to opt for cryptocurrencies.

 

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