Exchange Rate Paradigm in Nigeria: Dollar to Naira

Exchange Rate
Foreign Exchange rate in Nigeria has been responsible for the high inflation rate in all spheres of the Nigerian economy. This has affected the market value of all products within the country.
According to Aboki Fx, the exchange rate of dollar to naira in 2015 was at 1$ to 150Source Dollar to naira today is about 412 naira to $1. This is so unfortunate to the Nigerian citizens.

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The Ban on Cryptocurrency in Nigeria
Since there was serious devaluation of the naira, the Nigerian youths deviced a means of survival through trading of cryptocurrencies in the crypto market. Source It was a shocking news to Nigerians to hear that on February 5, 2021, that the Central Bank of Nigeria (CBN) issued a ruling instructing all financial institutions to stop the facilitation of all transactions involving cryptocurrency. It went further asking all the regulated bodies to identify individuals or organizations engaging in cryptocurrency transactions within their system and shut down their accounts with immediate effect. Nigeria is known to be the Africa's largest cryptocurrency market only second to the United States bitcoin. This proposed ban on cryptocurrency transactions in Nigeria was an avenue to increase poverty among the youths and other adults who depended on cryptocurrency transactions as their means of survival.Source although Nigerian youth found other means of transacting crypto within Nigeria.

Untold Hardship Associated with Exchange Rate
Nigerians almost import everything to the country. Take rice for instance, in 2014, a bag of rice of 25kg was sold for about 8,000 naira, which is equivalent to $53 as at 2015 exchange rate, is now sold for 30,000 naira.Source Household items are so expensive, due to there exchange rate value. An average Nigerian earns less than $2 per day.Source With the rate of dollar to naira today we can say that the general populace in Nigeria are suffering and needs help to survive. Government should make policies that are developmental in nature rather than personal interest.
The reality of life is that if the exchange rate continue to rise, there will be great hunger and increase in social vices within Nigeria and will extend to other part of the globe. Although, the value of cryptocurrency is falling, but crypto and forex are the hope of the common man in Nigeria.



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