The Naira appears to be up against a fresh threat from two crypto exchange platforms, just six weeks after the clamp down on Binance operations in Nigeria.
The national currency had slumped badly in the forex market
in the weeks preceding the clamp down on Binance, exchanging for as much as
N1,950 in mid-February.
But soon afterwards, the Naira started to recover and was at
a time N1,200 until the middle of last week when it lost some grounds to the
dollar again.
Observers blamed its earlier misfortune on alleged
manipulation of the market by Binance and are citing the new crypto exchange
platforms BYBIT and BITGET as the cause of the latest slip.
But Vice President Kashim Shettima declared yesterday in
Abuja that the Naira would continue its upward mobility against the dollar.
An investigation by The Nation also showed that many
speculators who had invested in the dollar in the hope that the naira would go
further down are now counting their losses.
On Monday last week, the Naira was N1,100 to a dollar at the
black market. It depreciated to N1,148 by Tuesday and N1,169 on Friday.
Observers believe this is on account of the operations of the peer to peer
platforms and say government must step in to stop the naira slide.
Following the recent recovery of the naira, the global
investment banking, securities and investment management firm Goldman Sachs
Group, Inc. rated it one of the best performing currencies around the globe.
The firm had initially predicted a naira to dollar exchange
rate of 1,200 by year-end 2024 but later said the Nigerian currency could
exchange for 1000 to a dollar or even below provided the authorities are able
to maintain the tempo of their economic reforms.
This bullish forecast, it said, followed capital inflows and
interest rate adjustments, aiding the naira recovery from substantial losses
incurred due to two devaluations since June, following the government’s
relaxation of currency controls.
But Vice President Shettima is optimistic that the naira is
on course to regain its status as a currency to reckon with.
“The naira went haywire and some people were celebrating.
But inwardly, we were laughing at them because we knew that we have the
leadership to reverse the trend,” the VP’s spokesman, Stanley Nkwocha, quoted
him as telling his visitors.
He added: “Asiwaju knows the game, and truly the naira is
gaining and the difference will drop further.”
Shettima said government’s decision to end fuel subsidy and
unify the multiple exchange rate was necessary to address the challenges facing
the country.
On efforts to boost the power sector and generate jobs for
youths, he said: “We are determined to ensure that we generate jobs for our
youths.
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