REVEALED: ₦1,900 Naira to $1? CBN, Fintech & Crypto Ban Explained!
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- čas přidán 8. 09. 2024
- Over the last few weeks, the Naira to dollar exchange rate has hung around the 1500 Naira to 1 dollar zone. However, at some point in February, the value of the Naira slumped to a whopping 1900 to the dollar. In this video, I will help you make sense of all the activities and controversies that have flown around in this period. What are your thoughts on the current state of the Nigerian economy? Leave a comment 👇🏽! #FinanceFriday #Crypto #FinTech
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I think it'll get better,and I strongly believe the government should have a proper sit down with Fintech companies here in Nigeria to see how tools can be developed on their platforms to promote or elevate the mere thought of Naira (for instance reducing their fixed dollar to naira rate, it's too inflated, we could have top ETFs on the platforms that you can only buy with naira) I don't know, we can do better and we will..
Subscribed.. enjoy your work sir..
Any space for internship?
Ive been trying to reach you as a fellow creator in nigeria but you don’t answer on any platform. I’m a fan and a brother. I need your insight
First it was BDC's then it was AbokiFX then they moved to Binance before finally settling the blame on Fintechs. Technically the cbn is still subsidizing the rates 1 year after floating the naira. The rates will still get to 1900 or 2k by this time next year
It’s wrong that BDCs were left to control the dollar indirectly, we had a time of two exchange rates which was just an infinite money glitch for the people with access to Dollar at “official rate”. The loop was crazy, get USD at bank rate (at about N450/1$) sell at black market (at about N750/1$) that’s about N300 profit on every dollar, and then still use the same money to buy more dollars and run it back again.
In my humble opinion this is where the chaos started. When banks were servicing USD transactions with little to no hassle, things were stable, the BDC had very little control over the market, in fact they would only get customer who were in a rush and there was little difference between the bank rates and BDC rates. No one felt the need to hoard dollar because it was accessible.
The currency markets are a cumulation of all the participants’ thoughts and actions. If people believe that it’ll be hard to get something in the future, demand will increase and hence the price increase (take covid and tissue papers in 2021 as an example). We saw our local cards go down to $100 dollars a month as a limit for international transactions and a few months later $20 a month until they entirely stopped servicing international transactions.
You don’t deprive a man food when they can watch you eat. They will find a way to eat too.
I might be wrong somewhere or have provided little context but, these are my two cents.
I just pray Nigeria gets back to a sustainable path. Nigeria will be great one day but only with the right policies.
Cleanest Nigerian Creator there is. the quality the eloquence. its Fisayo!
Thank you for the compliment 🙏🏾
@@FisayoFosudo Wanna be like you when I grown up. love you plenty
AFRICAN tbvh 🐐
Absolutely💯
I actually don't know what the nigeria govt expect when unemployment rate is massively high and the few who are working are underpaid, 70% of average youths in nigeria depends on crypto, forex trading and yahoo, for survival which is playing a huge role in deciding the fate of the currency and economy to some extent, sooner or later this current measures will stop holding water.
70 per cent is a really high number, though, please do more research
You forgot betting
It’s a circle that starts from bad governance. No Jobs, no education etc.
@slpha3525 it's actually more than 70%. The percentage of Nigerian youths working is VERY low. Are you not seeing how low the economy is?. Where will the work come from in a 250 billion dollars economy in 2024 which shrinked from 470 billion last year?. Our population is 230 million which increased from 220 million last year. Work is not enough to go around
You forgot about ghost workers in government administration.
A weak currency is not a bad thing if your country has an export-oriented base. Switzerland has intervened several times to weaken its currency to encourage exports. Japan has long benefitted from this scenario. The number one problem of Nigeria is POWER! How can a nation ever hope to become an industrialized, export-oriented economy without power? HOW?
Power and Transport. If Nigeria can solve these two, we'll advance so fast!
@@ISAACreate Energy literally is a critical factor for production. To think Nigeria has fossil fuel in abundance and have not leveraged it continues to amaze me.
I agree but you forgot to add insecurity. Insecurity is becoming a thorn in the flesh of worthy investors and entrepreneurs
Nigeria government is just plain crazy. You are a consuming nation and you think weakening your currency will help. Weaken currency is only good if you are a manufacturing nation.
Inflation in Nigeria is about 30% annually while that of America is about 3% . That, is the problem. Do the math and you will know what 1 dollar will be next year. The solution to Nigeria problem still remains exportation. Produce and export. Invent if possible, manufacture and export. I don't know how else to say this.
Common sense is not common 😅
Let them keep witch hunting their own ghost.
The highest users of crypto are the people in government
But first, solve the of power and transport.
Simple and short.
@@ISAACreatetruth!!!!
Your low tone helps to calmly listen to you for this long😊
VERY TRUE!
Finance Friday is back
Why is everyone forgetting that our banks have the biggest hands in this forex saga?
CBN banned us from buying forex directly and made it exclusive to banks and banks decided to hold it and sell only to abokis at rates they liked.
This contributed hugely to our exchange rate issues immensely cos no matter what happened in finance p2p, if the banks sold at the correct rates then price would've stabilized
Now I know why people couldn't create an account with kuda and Opay
So you've been living under a rock?
@@irokpe6977 haba calm down naa, no be every body go know
And moneypoint. Especially moneypoint
These are the videos I am subscribed for
All the other videos no dey concern me 😂
I tell you bro
real ones enjoy all his videos.
This is an awesome analysis Fisayo, i think there is more to be done like you highlighted, looking at the current interest rate increase by CBN to encourage FDI Foreign Direct Investment can also help to stabilise the exchange rate but also has an adverse effect on small business making them finding it hard to get funding . Its a lot but we hope that more measures and policies will create more positive change
When Dangote refinerry stats running fully, with NNPC refineries, there will be more forex due to stoppage of oil import.
Is this good or bad
@@ExcellentIfediora why is it bad?
I don't believe crypto was responsible for the fall of the naira. I heard people were making a lot of money. People bought dollars when going in. Majority of expenses in Nigeria are in Naira. So after multipyling your money in foreign currency you need to change it into naira. The money you are returning with is more than the naira you converted. So in the end, you are demanding more naira than the dollars you initially acquired in the first place. So if Nigerians are making money, (foreign currency) they are actually helping the naira by contributing to the foreign currency Nigerians are earning into the system. Lack of local production, and balance of international trade deficit, remain the major reason for the naira's plummet. Blaming crypto is just smoke and mirrors.
Well said
I don't know why this seemingly common sense knowledge is amis amongst so called intelligent economists out there. Well said. Nothing but facts. Let the govt keep blaming everything else but the actual issues. Rawbish. Lol m
Cryptocurrency investments are largely unregulated. A downturn in the crypto market could affect Nigeria’s foreign exchange if a substantial portion of the nation’s assets is invested in cryptocurrencies. Given the potential for manipulation by unscrupulous entities within major cryptocurrency exchanges, it would be prudent to regulate the crypto market under the Securities and Exchange Commission’s oversight, similar to other investment avenues.
It's not a long term solution, however Stopping the crypto p2p exchange was a short term solution.
The P2p traders were unregulated and constantly inflated the price of getting Usdt (dollar) with naira for profit.
This devalued the naira at an extreme rate.
That's why at some point it was increasing by 100 naira per day,
If you notice when the regulation happened along with the sanction on BDC's the extreme inflation stopped.
Crypto isn't the major factor that affected the naira, but it's one of the factors.
The way Nigerians were shorting the Naira against the dollar Contributed
The currency is quite volatile compared to the currency they’re earning in, would you willing convert all your earnings if you knew it could lose its worth the next day, it makes more sense to save in that currency and convert it when you want to spend
When that is the case you’ll have more people spending more naira (more demand) to acquire dollars than there are people spending dollars to acquire naira. The value for dollar increases and so does its price while the demand for naira decreases
Fisayo: "I'll get back to it later in the video..."
NEVER GETS BACK TO IT
First of all, This is a short and rich video very educative and informative. Thumbs up for that Fisayo.
The current solution provided by the Federal government is a temporal solution because their solution is just one in a thousand although that's a good move.
The federal government has to encourage local manufacturing of goods and services with the available locally sourced raw materials. Encourage farmers to produce more food, GMO produce are not good for us at all.
Well these are my taught and once again, thank you for this wonderful content
please more finance fridays. please
Thank you Fisayo. I enjoy how slow paced and very informative the video is. Keep up the good work.
I must commend you for the effort you put into researching on this subject matter. Well done
I am currently writing a paper on how financial crimes in Nigeria such as money laundering are done on this crypto platforms just like what we saw in the Jian Wen's case
Great work Fisayo. Always bringing us quality content 👏🏽💯
Great insight Mr Fisayo. Going straight down to finance Friday
WE NEED MORE OF FINANCE FRIDAYS FISAYO
Creating this must have taken a good amount of time. Thank you for preventing me reading all manner of information to make sense out of them all. Good presentation, I feel like my data was worth its use.
Thank you for watching 🙌🏾
We warned y'all about the APC but tribal and religious inclinations no allow una reason well.
Lol they will still not listen come 7 years time. Nigeria and tribal politics is the problem. I hope they're enjoying it now
@@Kcrectitude23 and they would make another video explaining how dollar rose to 10,000 in 2027, poor souls
Too bad most Nigerian youths are not educated on topics like this...
Even myself recently started educating myself on more government operations...
Awesome… I love the careful analysis and thorough research 👏👏❤️
Thank you for watching 🙌🏾
I enjoyed every bit of this.
Thank you for the insights
I seeeeeeee. it all makes sense nowww and you REALLY did a good job explaining. thank youuuu.
Gaining stability for the naira within this period is still going to be difficult as our reserves are declining if there is any, GDP isn't at its finest, foreign investment and companies are exiting due to FX rates and inflation is a precurrent problem for Nigerians on a quaterly basis. And let's not even get started on our country's debt infrastructure.
Honestly, i look forward to a finance friday video where Fisayo talks about how banks still remain profitable quaterly in a declining economy. As i speak for myself when i say finance friday explains economic events backed by data in simple terms.,
Hahaha... I look forward to that... How will banks not be profitable when they rack up multiple charges on every transaction even For just logging into the app...
@@DOXAINFINITY 😅😅
A very insightful video ❤
Its truly amazing the way youre effortlessly sticking to your script and still making it seem like you arent using a script
Foreign portfolio was also used to stabilize the Naira.
Thanks for the expose Fisayo, my POV is the other side of financial market disruption that isn’t spoken about. “Illegal racketeering” committed by banks & politicians who embezzle public funds. They also get these monies moved out using the crypto currency & all of these contribute to the weakening of the economy but many people overlook this eg Former Gov of Kogi state case with the EFCC
Thank you very much for this piece, Fisayo. Brought answers to some many questions I had on the fluctuation in exchange rate.
maybe tech guy IS finance guy after all. Looking forward to more vids like this
Fully informed
Thank you Fisayo.
Thank you for watching 🙏🏾
Thanks for doing this .
I've been trying do a research on why Binance was banned but I've been restricted due to inability to subscribe on platforms
man i've missed these finance Friday videos so much!
We are happy to see your content 😊
Subscribed To Finance Friday
thanks for keeping it simple and straight forward
PalmPay is now permitted to on-board customers.
What about moneypoint?
thank you for the insights boss fisayo🙌🙌
This is very informative. Thank you so much ❤
Thank you for watching 🙏🏾
So well made. I didn’t want it to end
Yes Friday!!!!
I love the editing and sound design
Good job sir Fisayo ❤❤❤❤
Thanks for the information
Finance Friday!!! 🎉🎉
Buhari and emiefele killed our economy beyond what anyone can imagine
Lets face the real truth, the dollar and digital currency investments has added to the devaluation of the naira BUT its not even among the top 5 reasons why Naira is devalued.
End.
Thank you Fisa...my first time to participate on the finance Friday since I subscribe...😊
When you float the exchange rate in a country that imports virtually everything it consumes, then you remove subsidy simultaneously from one item(petrol) that it's increase practically affects every consumables what would you expect to happen? Anyway what do I know? Great video mehn...
“We’ll reduce the purchasing power of the people to further slow down the economy” - Bola Tinubu. U can’t buy what u can’t afford
@@walebanj8388 That is all you can do when your economy is going to the toilet. Then strategically improve infrastructure and create an environment to improve the trade deficit. We all expect magic overnight at the worst time in history, what were we doing doing our glory days ?
Finance Friday is back
The Ethiopian government announces floating maket this week and we are afraid we could be like Nigerian. Could you make a video about it?
O.G fisayo back!
I am going shopping now after this video 💰
This just seems like an easy route to blaming fintech for the weakening of the naira, excluding the principal factors such as policies, lack of economic roadmap, unemployment etc
The 3 key things affecting the currency is 1. Insecurity 2.Electricity, 3.Bad Road Network if these can be solve. Which is impossible by the way then the currrency will appreciate, not by shifting of cbn policy every Eke Market days, we will be able to cater for our own needs and even export. so if they ban all the banks, it will not work, instead it will make it worse
Thank you for your efforts.
Well appreciated
I have been waiting for nearly a year for this!
A Country's exchange rates is just a weight index of investors demands.....a good economy is that which can give good circulation of it's currency regardless it's value..." if a man can make his own bread, why buy another man's bread"
Do a Kenyan shilling one
This is nothing but a classic show from the man FF
While I must commend the CBN governor for his effort in managing the monetary aspect of the economy, the fiscal aspect is where the real work lies. How do we go from import dependent country to export? Exporting goods and services will boost our FOREX as well as increase our foreign reserve. This is the only way our currency can be stronger against the dollar. Good job Fisayo!
Even if we don't export that much, if we manage to meet about 90% of our needs locally, Naira will be stronger against USD.
@@irokpe6977 That too, but we still need lots of investment in agriculture to be able to meet local demand. I wonder what these people in government think about when the solution is pretty straight forward.
Where do you get your stock videos from.
Great video by the way. I pray it doesn't lead to the "Great Depression of the 1930's" or "2009 UK inflation"
As an Economic student, just as how Zimbabwe made bad monetary and fiscal policies which led to its demise, i hope Nigeria don't do thesame.
Though around the latter part of march and early April,naira gained the title of being "the strongest currency in the 1st quarter of 2024" by forbes.
For the naira to reach equilibrium of 1050/$ back in April and the slight reduction in some certain goods and services i think it might have a correction in the next couple of months if good policies are kept.
Keep in mind the FOUR(4) Economics/business cycle.
1. Expansionary (getting to full employment)
2. Peak(full employment)
3. Contraction (unemployment)
4. Trough (full unemployment)
I hope this was helpful in any way.
Yay for Finance Friday
Amazing video!
Nice video but you actually did not explain why the crypto ban resulted in stability of the naira.
Why did the dollar drop during the last Muslim holiday? To 950 and will it drop again?
I got a notification from kuda yesterday saying "anyone can now open a kuda account! Tell a friend to tell a friend to join you here" I guess they've lifted the ban.
Thanks for the information 👍
11:18 over 200 million people
LFG!
Nice one..... well explained.
Dollar to naira will get to #2000 if there's no production in Nigeria.
We are blessed with confused individuals as leaders in this nation. From top to bottom
You mean "cursed"
Fisayo thanks for the enlightenment
As an opay agent people don't want to understand....they are like make Una pack Una money commot ooo ..... Which sound very funny
Cus we are in a word now where even Ur personal stuff are virtual😁😁😁
So if yu have any advice for we Nigerians to follow jst put it out
Cus I wanna see my motherland currency compete with the world greatest ones
Thank you for this
Please can you use time stamps?
Insightful analysis
The ban has been lifted on Opay now
Not arrested. More like kidnapped.
Time to buy more dollar
You forgot to mention the ban of aboki fx on grounds that they were manipulating the fx price by their daily publications.
However, despite the ban we see no increase in the value of the nsira. It has since crashed beloe what it eas when aboki fx was banned
In which part of Nigeria is smartphone cost declining???????
I'm happy you highlighted the foul play by CBN when it comes to targeting the fintechs for their growth, having backward people as leaders has really affected us as is evident with our economy today in Nigeria, there is a more lasting solution to the exchange rate but the people in Government are not interested in taking those steps, after the back and forth we will all come to accept the fact that these steps with the fintechs are only temporary.
Absence of adequate production equals a failed economy 🇳🇬
I am really not a financial expert but I believe that putting a ban on cryptocurrencies and forex is not the solution the problem, it might’ve work now but what of in The long term
Rather than putting a ban you can use strict regulations by coming to a consensus with big exchanges like binance
The best
You can't keep borrowing US dollars and selling to Bureau de Change at a discount in order to stabilize the Naira. Come to think if it, how sustainable is this. It might have been sustainable to an extent if the Nigerian govt prints dollars 😅😅😅 but sad, this will get out if hand. I see 2000Naira/$ in the nearest future. Very sad.
you video came quite a bit too late , and we make likely see further devaluation in coming months as a result of higher inflation
Like this comment if you love this review
Bye to naira
I hope this fiannce friday doesnt put you in trouble sha... Thread carefully my brother
He didn’t say anything new or outrageous to the whole currency situation.
All what he said were what has been known.
I was actually expecting something different though.
Weak currencies encourage FDI, which happens in Nigeria but the politicians siphon every return for themselves
How do we get our money out of these banned platforms
1:58 😂😂
Hi
Why have you not done a review on your iPad 😢
Hello Fisayo, does this also affect Forex Trading?
Is Forex Trading banned?