Nigerians Run To Crypto Amid Falling Naira, Bitcoin P2P Trading Surge By 258% In 7 Days.
Many Nigerians are hedging against collapsing local currency by amassing dollar-denominated digital assets, in particular stablecoins and bitcoins. Thereby causing the fiat local currency (naira) to plunge to a record low in the black market.
According to recent data, Nigerians traded over $5 million worth of Bitcoin on the popular P2P trading website Paxful, and LocalBitcoins saw a 258% increase.
Many Nigerians nonetheless exchange the digital currency in the peer-to-peer market where transactions are price in dollars; despite the fact that banks are forbidden by the central bank from aiding cryptocurrency transactions.
In addition, information from foreign exchange dealers in various areas of Lagos, the country’s commercial centre, reveal that the Naira was exchange for the dollar at a rate above N710 to the dollar. While the hard currency was from holders at a rate between N695 and N700 to the dollar.
Also escalating market volatility in the shadow market is the Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele’s recent comments at the recently concluded MPC meeting; thus increasing the number of Nigerians panicking and selling their Naira investments for dollars.