Naira Drops Closer to N480 Per Dollar at the Crypto Market
Naira today losed further to dollar dropping to an all-time high of N478 to $1 while experts claim a possible N500 per $1 by the year 2021.
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According to DiutoCoinNews Market Insights, Naira touched N470 to a dollar for the first time in Q4 2020 on Nov 11, 2020. Naira was trading at an average high of N471.5 and an average low of N468.9 at the bitcoin to naira market.
— DiutoCoinNews Market Insights (@DiutocoinnewsMI) November 11, 2020
Today, we recorded a new all-time high at N478 naira while Naira was selling at an average of N477.0 to $1 bitcoin. The buy order is currently trading at an average of N476.8 per the report from DiutoCoinNews Market Insights.
The weakening of the naira has been attributed to the drop in foreign reserves, which lost $31.6 million to close the week at $35.6 billion. Likewise, OPEC+ projects that demand for crude oil will dip in 2021 adding to naira’s woes.
While naira keeps dropping, most crypto traders are already hedging against inflation using dollar stablecoins like USDT, USDC and BUSD.
According to Afrinvest Analysts, “In the coming week, we expect the CBN to resume its liquidity intervention as Open Market Operation (OMO) worth N103.1 billion would hit the system. We expect rates in the secondary T-Bills market to remain low due to huge money supply”.