Coronavirus COVID 19: Nigerian Naira (NGN) Trades 380 per US dollars on the Crypto Market Following the Naira Crash on Crude Oil Market.
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The value of Nigerian Naira crashes more at the foreign exchange market because of the massive crash in crude oil price despite the constant intervention from the Central Bank of Nigeria which is heavily affecting the country’s foreign reserve.
Moreover, the heavy pressure on Nigeria’s foreign exchange market has affected the price of Naira across all the market segments including the Bitcoin market and other cryptocurrency market.
The issue of Coronavirus has affected the world economy, causing a big market crash on the Nigeria Stock Exchange (NSE) market. It was reported that Naira went down yesterday against the dollar in the parallel market by N9 Naira.
This seems to be the biggest daily fall of Naira against the US dollar since 2017. This is similar to the last outstanding uptrend in Bitcoin and the cryptocurrency market in general in 2017.
Moreso, the Nigeria Naira currently trades at N397 naira per $1 at the time of writing. It went down from N385 naira per $1 losing N12 naira against the US dollar on the crypto market on Binance.
Also, one Bitcoin trades at NGN 2066378.31 naira on Paxful which is far more cheaper compared to the exchange rate on Luno priced at NGN 2,209,998 while remitano sells at N2,011,924.24.
At the Investors and Exporters (I&E) window, the exchange rate lost N1.58 as it rose to N368.33 per dollar from N366.75 per dollar. This is also the biggest daily depreciation that the window has recorded since 2017 when it was introduced.
While some market operators attribute the market crash to the coronavirus disease — COVID-19.
Some other market operators believe that this development is because of a rise in the demand for the US dollar while traders are forecasting foreign exchange scarcity because of the crash in the price of crude oil.
Meanwhile, the issue of coronavirus has affected many countries in the Europe and Asia affecting import and export of goods and services. Moreover, it has also affected travels causing the US and other nations to close doors for foreigners.
The President, Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe explained how CBN had been intervening in the market by selling dollars to the BDCs. He said that CBN has plans to sell around $75 million to them on Thursday at N357.
The global chief economist at Renaissance Capital, Charles Robertson, said that Nigeria’s debt to revenue ratio would look bad due to the crash in oil price and it will negatively affect the country’s debt profile.