Binance Nigeria Exit And Naira Value

In a trending news, Binance Nigeria has been accused by the Federal Government of Nigeria to be responsible in certain manipulation of Naira Value.

Recall that during the administration of the former President of Nigeria M. Buhari and the suspended CBN Governor Mr Godwin Emefiele, Abokifx was held responsible for the manipulation of Naira to fall in value when compared to other currencies in the world such as dollar, euro, pounds etc.

Binance is a notable Exchange in the world for cryptocurrency transactions and has pool of fans in Nigeria. It was equally discovered that fans of cryptocurrency started adopting saving in usdt which is virtual digital currency like US dollar but never backed by the United States government. The rate of Usdt to naira became very wide and contributed to the analysis of dollar to naira value. Some analysts alleged that those in exchange busines no longer relied on true value of naira instead resorted to getting update from Binance on the usdt rate thereby fixing naira to dollar rate at the black market.

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A Nigerian born pastor and busines man living in South Africa Mr Charles Awusie agreed that certain group of speculators uses Binance to manipulate the value of naira which became dangerous for Nigeria economy. He supported the decision of the federal government to check the excesses going on in Binance as relative to the Nigeria economy.

In other reports, it was alleged that the exchange platform became a tool to launder money that can’t be accounted for. The federal government of Nigeria gave Binance Nigeria some rules to follow and obey as a way of regulating the system.

Recall again that the current Federal Government of Nigeria led by President Bola Ahmed Tinubu floated naira and equally removed fuel subsidy. Certain factors in the new policy made naira to be above seven hundred naira to one United States Dollar (usd).

Binance Nigeria is said to have closed door for naira trading in peer 2 peer (P2P) platform leading to changes in the existing norm.

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It is also a coincidence that Bitcoin which is a cryptocurrency went higher during the period that Binance Nigeria is said to be exiting the Nigeria market. The nature of Nigeria as the biggest economy in Africa has made the country to be one of the biggest country in Africa that have many fans of cryptocurrency or digital assets.

It has not been proven beyond all reasonable doubt that Binance was the cause of the naira fall as fingers points to other issues and policies of the government.

The administration of the incumbent president of Nigeria will mark one year in office on 29th May 2024.

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