{"id":14403,"date":"2022-11-10T10:46:41","date_gmt":"2022-11-10T10:46:41","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/nigerian-currency-gains-versus-us-dollar-days-after-tapping-all-time-low-africa-bitcoin-news\/"},"modified":"2022-11-10T10:46:41","modified_gmt":"2022-11-10T10:46:41","slug":"nigerian-currency-gains-versus-us-dollar-days-after-tapping-all-time-low-africa-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/nigerian-currency-gains-versus-us-dollar-days-after-tapping-all-time-low-africa-bitcoin-news\/","title":{"rendered":"Nigerian Currency Gains Versus US Dollar Days After Tapping All-Time Low \u2013 Africa Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Just a few days after plummeting to its worst exchange rate against the U.S. dollar ever, the Nigerian currency was trading at around 820 units for every dollar on Nov. 8, a report has said. An economist has suggested that the Central Bank of Nigeria\u2019s controversial currency plan is unlikely to halt the naira\u2019s depreciation or tame inflation.<\/strong><\/p>\n

EFCC\u2019s Crackdown on Currency Dealers<\/h2>\n

The Nigerian currency\u2019s parallel market exchange rate versus the U.S. dollar rebounded<\/a> from an all-time low \u2014 900 units per dollar \u2014 seen at the start of the month to around 805:1 by Nov. 8. Some reports have attributed the naira\u2019s recovery to the Economic and Financial Crimes Commission (EFCC)\u2019s crackdown against suspected illegal foreign currency dealers.<\/p>\n

As reported<\/a> by Bitcoin.com News on Nov. 5, the naira\u2019s latest quick-fire depreciation was prompted by the Central Bank of Nigeria (CBN)\u2019s new 100, 200, 500, and 1,000 banknotes announcement.<\/p>\n

While the central bank\u2019s plan to replace old banknotes with redesigned banknotes has won the backing<\/a> of President Muhammadu Buhari, some Nigerian experts, as well as the International Monetary Fund (IMF), have warned<\/a> of the possible consequences of implementing the plan.<\/p>\n

Exacerbating the Naira\u2019s Woes<\/h2>\n

Yet, despite the mounting criticism and warnings, the CBN has stuck to its guns and will reportedly start issuing the new banknotes on Dec. 15 as planned. The central bank has said all the banknotes that are set to be demonetized must be returned on or before Jan. 31, 2023.<\/p>\n

However, according to one Nigerian economist, Bismarck Rewane, for the CBN\u2019s plan to succeed, Nigerian banks will need to exchange banknotes worth over $105 million (87 billion naira) every day. Besides exacerbating the naira\u2019s woes, Rewane reportedly<\/a> said the CBN\u2019s currency plan will not solve Nigeria\u2019s inflation problem.<\/p>\n

Meanwhile, despite the naira\u2019s fall to record levels versus the greenback on the parallel market, on Nov. 9 the currency was still pegged at around 450 per dollar on Nigeria\u2019s official forex market.<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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