Nigeria has taken drastic measures to try to stabilize its flagging national currency, the naira, by blocking access to major cryptocurrency exchanges, the Financial Times reports. The move comes as the Nigerian government tries to crack down on currency speculation amid record declines for the naira.
JUST IN: 🇳🇬 Nigeria blocks access to Coinbase, Binance and Kraken as its national currency falls to record lows, the Financial Times reports.
— Bitcoin Magazine (@BitcoinMagazine) February 22, 2024
The Nigerian Communications Commission (NCC) issued orders to telecommunications companies late on Wednesday to restrict consumers' access to the websites of major cryptocurrency platforms such as Binance, Coinbase and Kraken. As a result, consumers experienced only intermittent access to these sites on Thursday.
Bayo Onanuga, Special Adviser on Information and Strategy to the President of Nigeria, went to X to say that the local report of the government blocking access to exchanges was true.
The marked times are correct.
Forex Crisis: Nigerian Government Bans Binance, OctaFX, Coinbase and Others https://t.co/cq6DoxqInj
– Bayo Onanuga (@aonanuga1956) February 22, 2024
Cryptocurrency exchanges have played a large role in setting unofficial market rates for the naira, with platforms like Binance often acting as benchmarks for local forex exchange rates. The government's move to block access to these platforms is an attempt to regain control over the valuation of the naira.
Onanuga also stated that “Binance, which is facing a regulatory standoff in several countries and has caused turmoil in the currency market, should not be allowed to dictate the value of the naira, not on its cryptocurrency exchange platform.” “Cryptocurrencies must be banned in our country otherwise the bleeding of our currency will continue unabated.”
Nigeria's adoption of reckless tactics to defend its currency, including shutting down price-fixing sites and declaring some cryptocurrency entities illegal, highlights the challenges the country faces in managing its economic stability. The Nigerian national currency has lost more than 70% of its value since its central bank raised its currency peg to the dollar in June.
