Naira Faces New Crypto Exchange Threat After Binance Clampdown



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The Nigerian Naira is encountering fresh challenges from two crypto exchange platforms, following regulatory actions against Binance just six weeks ago. The national currency had experienced significant depreciation in the forex market prior to the Binance clampdown, reaching as low as N1,950 in mid-February.

However, the Naira showed signs of recovery, reaching N1,200 at one point, until it recently lost ground against the dollar again.

Observers attribute the Naira’s earlier decline to alleged market manipulation by Binance, and they now point to new crypto exchange platforms, BYBIT and BITGET, as contributing to the latest setback.

Vice President Kashim Shettima declared in Abuja that the Naira will continue its upward trajectory against the dollar.

An investigation by The Nation revealed that many speculators who bet on the Naira’s depreciation by investing in the dollar are now facing losses.

Last week, the Naira traded at N1,100 to a dollar on the black market, dropping to N1,148 by Tuesday and N1,169 by Friday. Observers attribute this decline to the activities of peer-to-peer platforms and emphasize the need for government intervention to stabilize the Naira.

Following the recent recovery of the Naira, global investment firm Goldman Sachs Group, Inc. rated it as one of the best-performing currencies worldwide.

Initially forecasting a Naira to dollar exchange rate of 1,200 by year-end 2024, Goldman Sachs later suggested that the Nigerian currency could strengthen to 1,000 or even below, provided economic reforms are sustained.

This optimistic outlook follows capital inflows and interest rate adjustments that facilitated the Naira’s recovery from substantial losses due to currency devaluations since June, prompted by the government’s relaxation of currency controls.

For more details on the Naira’s latest challenges, refer to Page 26.

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Gbenga Samson
Gbenga Samson
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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