I said let me ask from experts as am not satisfied with my thoughts. When bitcoin was above 28k,the exchange rate of Naira to USD was around 900+ but now that bitcoin price has dumped to 25+-26+,the exchange rate of Naira fell to 830+ to 840+. Is it that the price of bitcoin is affecting both USD and Naira because I don't know when Naira has become as volatile as this. Or is it because of the inflation that we are experiencing or it is normal that this price flatuation in Naira ? Or bitcoin price controls money either digital or paper.
Naira is affected by Nigeria economy and by what is happening in Nigeria. If Nigerians are demanding more for dollar and continuing to depend on imports, the naira value will continue to reduce which is the problem we have in Nigeria.
But recently, the president had a meeting with CBN president, the CBN president said they will do somethings that will add value to naira which led to the market reaction that makes people to be selling dollar and buy naira which increased naira price from ₦945 back to less than ₦880 to a dollar. What also makes naira value to increase more was the money NNPCL borrowed recently and they are pointing that it would strengthen naira. You know how the market can react to something like this. Or maybe it had direct effect also but which I do not know.
Bitcoin is controlled separately by buyers and sellers. The more the demand the more the price. If people are selling bitcoin than buying it, the price will fall which was what that plummeted its price recently from over ₦28 million to ₦21,894,000 million. But as naira increases in value, this will decrease the price of bitcoin in relation to naira but which may be unnoticeable as bitcoin price plummeted abruptly and significanly with a short time.
The value of naira is decreasing again and has gone up from ₦835 to ₦879 to a dollar as of today.
Nicely said, but one thing that is sure for me is that both FG and CBN are clueless about the current FX situation, hence, the naira will continue to dump against the USD and Bitcoin. You've correctly iterated the true cause of this which is more importation than exportation and too much foreign currency reliance causing a shortage of FX and in turn mounting further pressure on Naira.
As for the CBN acting govern, he is only making an empty threat and fruitless effort, he believes he can overcome the weed by cutting the surface. The effect of what he's doing will not last, he only used the speculative part that is causing the Naira depreciation to change the narrative, but for how long?
I conclude by saying that Naira will ever have the USD and Bitcoin to battle with powerlessly, and even if the USD is stable against it, BTC will not, it will eventually appreciate. It has sold already but holding well above the important barriers I see at $24,700-$25,00. It will be tough for BTC to breach those levels downwards, and if it can't and rather reverses higher, then it's another payday for those holding it against the Naira with a little reference to the USD.
just like say na English tone. Joke apart di price is doing well now. If anyone wants to invest it is not too late still do am and you go benefit plenty before even this year go end.
