Currency exchanges in Nigeria
If you are considering using cryptocurrency to make a purchase or sell a currency, you’re probably wondering how currency exchanges in Nigeria operate. This article will help you understand the differences between cryptocurrencies and traditional currencies. This will give you a better understanding of how the process works and which e-currency exchanges are available in Nigeria. Also, you’ll learn about the pros and cons of each of these options, and find out where to get them.
There are numerous risks associated with cryptocurrency in Nigeria. While the Central Bank of Nigeria (CBN) has not yet banned cryptocurrency in the country, they have placed strict rules and regulations to protect consumers from exploitation. If these policies are not followed, cryptocurrency adoption could lead to a complete ban. Therefore, you should carefully research any cryptocurrencies before deciding to purchase them. It’s always better to be safe than sorry. The CBN has a list of regulated and unregulated crypto exchanges in Nigeria.
One of the best-known e-currency exchanges in Nigeria is Patricia. Founded in 2012, this Nigeria-based company is a subsidiary of R-Global Integrated Systems. With over 15 years of experience, this exchange has built a strong reputation as a reliable, secure, and fast service provider. Customers can also use Mytopexchange to buy and sell bitcoin, Perfect Money, Neteller, InstaForex, and Webmoney.
In terms of the naira, the Nigerian currency has been weakened significantly during the past two months. The naira hit a new record low of NGN 419.8 per USD on 14 May and fell to NGN 412.8 per USD on 20 May, a decrease of 7.7% year-on-year and 12.7% month-on-year. The fixed exchange rate acted as an anchor while real shocks acted as shock absorbers.
The evolution of the foreign exchange market in Nigeria was shaped by structural and institutional changes in the economy. Prior to the introduction of the Second-tier Foreign Exchange Market, most of Nigeria’s foreign exchange was earned by private entities. Commercial banks were the primary agents of local exporters, and the bulk of foreign exchange receipts came from agricultural exports. The Nigerian pound was tied to the pound sterling at par, which delayed the development of a fully active foreign exchange market in the country.
A growing number of digital currencies have entered the market in recent years, and many are based in Nigeria. A recent startup called Roqqu was founded by a young Nigerian trader. It serves as an e-payment centre for Nigerians, and has a bill payment processor integrated into its platform. Despite its newness, the company has already processed over $20 million in transactions and boasts 250 000 users nationwide.
While the adoption of the eNaira is highly anticipated, the country’s government and central banks have expressed concerns over its potential negative effects. The country’s large informal economy – which accounts for more than half of the GDP – is a major concern, especially given the unregulated nature of the currency in the country. But while this is unavoidable, the introduction of the eNaira is an exciting step towards greater financial inclusion.
