ADevilYouKhow
Rhyme Reason
So many African countries are defaulting right now
THE PIVOT TO AFRICA 🌍 THREAD
- Thread starter ☑︎#VoteDemocrat
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So many African countries are defaulting right now
maybe they should dollarize
So many African countries are defaulting right now
Somalia authorises Turkey to defend its sea waters in 'historic' deal
Somali government approves a defence deal that reportedly mandates Ankara to build a navy for the country and defend its coastline while doing so
www.middleeasteye.net
ADevilYouKhow
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Came to post this
Nigeria blocks access to crypto exchanges in effort to curb currency slide
Local consumers given only restricted access to markets like Binance and Coinbase
www.ft.com
Nigeria blocks access to crypto exchanges in effort to curb currency slide
Local consumers given only restricted access to markets like Binance and Coinbase
Street currency exchange
The naira hit 1,600 to the dollar on Wednesday despite the government twice devaluing the currency in eight months © Bloomberg
Authorities in Nigeria have blocked access to some of the world’s largest cryptocurrency exchanges as the government tries to crack down on currency speculation while the naira tumbles to record lows.
The Nigerian Communications Commission (NCC), the telecoms regulator, late on Wednesday ordered telecoms companies to restrict consumer access to the websites of companies like Binance, Coinbase and Kraken, according to people familiar with the matter. On Thursday consumers had only intermittent access to some sites.
The controls mark a U-turn on cryptocurrencies in Nigeria, which President Bola Tinubu’s government had seen as part of its sweeping market-friendly reforms, designed to attract overseas investment to its struggling economy.
The reforms included a drive to regulate digital assets, where tokens like bitcoin and tether are seen by some as a rival to traditional assets. The government also reversed a ban on crypto transactions, in place to tighten up money laundering and terrorism financing standards.
But the government is also trying to tidy up its messy system of multiple exchange rates and end its years long currency peg. It has twice devalued its currency in eight months. The naira hit 1,600 to the dollar on Wednesday, according to LSEG data. At the start of January it was less than 900.
Crypto exchanges have become important conduits to establish unofficial market prices for the naira. The prices quoted on Binance often serve as a benchmark for local foreign currency exchange rates. Local traders also use the exchange to trade between the naira and tether, the world’s largest stablecoin — the value of which is pegged to the US dollar.
On Wednesday Bayo Onanuga, a special adviser to President Tinubu, accused Binance on social media website X of “blatantly” setting the exchange rate for Nigeria and hijacking the Central Bank of Nigeria’s role as the main currency rate setter.
“Crypto should be banned in our country or else this bleeding of our currency will continue unabated,” he wrote.
A spokesperson for Binance said “some users in Nigeria are experiencing issues accessing binance.com, as well as other platforms in the industry,” adding that users’ funds are secure. The NCC did not respond to multiple requests for comment. Coinbase and Kraken also did not respond to a request for comment.
Nigeria was second only to India last year in the proportion of private wealth stored in cryptocurrency, according to data provider Chainalysis. However analysts said interest in digital assets was mainly confined to young investors. Digital assets have gained popularity because many people have lost trust in the naira as a reliable store of value.
“Crypto isn’t even a conversation for people who aren’t tech savvy,” said Eresi Uche, an associate at law firm Cytowski & Partners.
“The naira has been increasingly unstable but market crashes featuring crypto in the last couple of years force people to decide whether their money will be safer in crypto or with the naira,” Uche added.
Nigeria has adopted unorthodox methods to defend the waning value of its currency in recent years. AbokiFX, a price setting website, was shut down by former central bank governor Godwin Emefiele in 2021 after being accused of “illegal activities”. In 2015, trees lining the streets of the capital Abuja were cut down to prevent the activities of parallel market traders.
A local Binance entity was declared illegal by the Nigeria Securities and Exchange Commission last year because it was not “registered or regulated” by the agency. However consumers have been able to access the international Binance.com site.
In November Binance paid a $4.3bn penalty after pleading guilty to US criminal charges related to money laundering and breaching sanctions. Its founder Changpeng Zhao also stepped down as chief executive.