Since the primary cause of our deaths in Nigeria is rising food prices, the government should ensure that these costs are reduced. Everyone will start investing in what he is selling as soon as they notice that the dollar is rising, and those food goods won't decrease when the dollar is declining. Furthermore, the government will only ignore it without taking any action.
Yes, man, I really do agree with you on this. The Nigerian government should not only fight to reduce the dollar rate against the naira because even if the value drops a little, traders don't reduce the price of goods in the market. The price of goods and services still remains much higher than usual, and it seems useless to reduce the dollar to naira exchange rate when the purpose of doing so is not fertile.Despite trying to stop the Binance exchange, the USDT/NGN rate still remains around ₦1,500, which formally was ₦1,900 on Binance. It means there was just a 20% drop in the rate, and there is still every possibility that even if Binance delists Naira, the rate will still go high again.
Just a few days ago, I sat at my office and I was contemplating the Nigerian government accusing Binance Exchange as the cause why the exchange rate has spiked. Then I decided to do a little look back at the history of the naira and dollar. You can see the information I found below.
1972 $1 = N0.658
1973 $1 = N0.658
1974 $1 = N0.63
1975 $1 = N0.616
1976 $1 = N0.62
1977 $1 = N0.647
1978 $1 = N0.606
1979 $1 = N0.596
1980 $1 = N0.550 (0.900 Black Market Rate)
1981 $1 = N0.61
1982 $1 = N0.673
1983 $1 = N0.724
1984 $1 = N0.765
1985 $1 = N0.894 (N1.70 Black Market Rate)
1986 $1 = N2.02 (N3.90 Black Market Rate)
1987 $1 = N4.02 (N5.90 Black Market Rate)
1988 $1 = N4.54 (N6.70 Black Market Rate)
1989 $1 = N7.39 (N10.70 Black Market Rate)
1990 $1 = N7.39 (N10.70 Black Market Rate)
1991 $1 = N8.04 (N9.30 Black Market Rate)
1992 $1 = N9.91
1993 $1 = N17.30 (N21.90 Black Market Rate)
1994 $1 = N22.33 (N56.80 Black Market Rate)
1995 $1 = N21.89 (N71.70 Black Market Rate)
1996 $1 = N21.89 (N84.58 Black Market Rate)
1997 $1 = N21.89 (N84.58 Black Market Rate)
1998 $1 = N21.89 (N84.70 Black Market Rate)
1999 $1 = N21.89 (N88-N90 Black Market Rate)
2000 $1 = N85.98 (N105.00 Black Market Rate)
2001 $1 = N99-N106 (N104-N122 Black Market Rate)
Between 1972 and 2001, 1 dollar went from ₦0.658 to ₦100+. Now my question is: has Binance been in operation since 1985 when 1 dollar became ₦1?Since then, what has been done to reduce the exchange rate back to how it was in 1972?
So, what I am trying to say now is that, even if Binance is stopped from trading NGN/USDT, it will not stop the exchange rate from going up.