Last updated on March 30th, 2020 at 01:11 pm
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There is a severe pressure on Nigeria’s foreign exchange market which has led to significant depreciation of the Naira across all the market segments, with some experts predicting a further depreciation of the Naira by June.
Most cryptocurrency exchanges like Quidax and other exchange including Luno, Naijacrypto, Binance and others are selling on an average of N400 – N420 Naira per One US Dollar.
The value of Naira significantly reduced against the US Dollar at $1/N403 at the cryptocurrency market indicating N23 (around 1.5 per cent) loss compared to $1/N380 recorded on Wednesday.
The Nigerian currency also lost against euro as it currently costs ₤1/N470 for sellers and ₤1/N485 for customers buying.
The US dollar is bought at an average of $400 per 1$ at the cryptocurrency market on Binance at the time of writing and sells for an average of N403 per 1$ on Binance.
Meanwhile Euro is bought for €1 per N405 and sold for €1 per N412 at the parallel market.
Moreso, the Nigeria Naira currently was trading at N397 naira per $1 as at yesterday on Binance. The price of Naira, NGN, went down from N385 naira per $1 on thursday morning losing N12 against the US dollar at the crypto market on Binance.
Also, one Bitcoin trades at NGN 2066378.31 naira on Paxful which is cheaper compared to the exchange rate on Luno priced at NGN 2,209,998 while remitano sells at N2,011,924.24.
Recall that the Nigerian Naira lost its value by N14 against the dollar at the bitcoin market on Wednesday. This is the biggest daily fall against the dollar since 2017, as the exchange rate increased sharply from N366 to N380 per dollar on Wednesday.
At the Investors & Exporters (I&E) window, the exchange rate lost N1.58 and increased to N368.33 per dollar from N366.75 per dollar. This is also the biggest daily depreciation that the window has recorded since 2017 it started operating.
Some experts and market operators believe its the global coronavirus outbreak that is affecting the movement of goods and thereby affecting the foreign exchange rate including the bitcoin and cryptocurrency exchange rate.
The price of crude oil saw a big price slash putting a severe pressure on foreign reserve due to the Central Bank of Nigeria’s sustained intervention thereby negatively affecting the value of Naira.
Market operators believe that this is due to an increased demand for the dollar. Meanwhile, many traders are forecasting foreign exchange scarcity because of the crash in cryptocurrency market caused by the global coronavirus outbreak.
Most Bitcoin and cryptocurrency merchants are selling N420 per $1 worth of Bitcoin to its customers. The cryptocurrency market lost billions of dollars with BitMex liquidating $665 million dollars on Bitcoin longs as at Thursday.