Cryptocurrencies
Crypto Trades Drive Naira to New Low in Unauthorized Market
- Nigerians piling into crypto due to low confidence in naira
- Naira to dollar rates now tracking crypto exchange rates
Naira banknotes in Lagos.
Photographer: Damilola Onafuwa/BloombergThis article is for subscribers only.
Nigerians accumulating cryptocurrencies to shield assets against a weakening naira have contributed to a slump in the fiat currency to a record low in the unauthorized market.
The naira weakened to 670 per dollar on Wednesday said Abubakar Mohammed, an operator of a bureau de change that tracks the data in Lagos, the nation’s commercial hub. This compares with 424.34 naira at the official spot market as of 9.22 a.m. local time, 58% cheaper than the rate in the black market, where the greenback is freely traded.