![\"Nigerian](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/07\/naria.jpg\")
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The Nigerian central bank has accused currency speculators of being behind the local currency\u2019s recent plunge to a new all-time low of N710 against the greenback. The leader of a Nigerian association of bureau de change operators insisted crypto trading may be to blame for the naira\u2019s recent plunge in value. <\/strong><\/p>\n According to local reports, the parallel market exchange rate of the Nigerian currency against the greenback recently plunged to a new low of N710 per dollar. The currency\u2019s rapid depreciation is reportedly being fueled by Nigerians who are converting their savings from naira to the greenback.<\/p>\n Yet, despite the currency continuing depreciation on the parallel market, the Central Bank of Nigeria (CBN) insists the naira\u2019s official exchange rate against the dollar remains at approximately N424 for $1.<\/p>\n In a statement following the naira\u2019s latest fall, Osita Nwanisobi, the CBN\u2019s director of corporate communications, blamed speculators for causing the currency\u2019s recent fall. Nwanisobi nonetheless claimed<\/a> that the central bank\u2019s interventions such as the Naira for Dollar incentive scheme and the RT200 FX Programme are already helping Nigeria address its longstanding problem of foreign exchange shortages.<\/p>\n Resolving the country\u2019s foreign exchanges helps to stabilize the naira\u2019s exchange rate. Yet as a recent report<\/a> by Bitcoin.com News suggested, the CBN\u2019s Naira for Dollar remittances incentive scheme \u2014 launched<\/a> in March 2021 \u2014 has failed to help halt the naira depreciation. The report pointed to the naira\u2019s plunge against the dollar which was more than 25% at the time.<\/p>\n In addition to his claims the central bank\u2019s interventions were working, Nwanisobi said Nigerians must also help \u201cshore up the value of the naira.\u201d<\/p>\n Meanwhile, Aminu Gwadabe, president of the Association of Bureau de Change Operators of Nigeria, is quoted in a Bloomberg report<\/a> suggesting that crypto trading may be fueling the naira\u2019s depreciation.<\/p>\n \u201cThe USD rate on the crypto floor is used in determining the value of the local currency,\u201d Gwadabe is quoted explaining. On why Nigerians are buying the U.S. dollar, Gwadabe said they were doing this because they have lost confidence in the naira.<\/p>\nNigerians Converting to USD<\/h2>\n
Crypto Trading Fueling Naira Depreciation<\/h2>\n