Recently the Central Bank of Nigeria (CBN ) has resolved that it is going to allow the naira float freely at the inter bank market.
After his last Monetary Policy Committee meeting(MPC) held on tuesday the CBN governor, Godwin Emefiele is quoted at saying:
“In summary, the MPC voted to introduce greater flexibility in the inter-bank foreign exchange market structure and to retain a small window for critical transactions”
Allowing the Naira to float freely means that the Nigerian government is leaving the forces of demand and supply to determine the foreign exchange market rate. This means that the more people demand for the Dollar, the more they will pay for it in Naira. For instance, during the resumption of schools abroad, affected Nigerian parents will demand for Dollars thereby leading to an increase in the exchange rate of a Dollar to the Naira. During this period, banks will then set their own exchange rate based on demand in order to sell to those willing to buy at higher rates.
Following this announcement, Nigerians will not be able to buy US Dollars at the CBN rate of 199. This means that people who want to make payments for school fees, business, tourism, medicals, holiday and other bills will not be able to buy at 199. They are now left at the mercy of the inter-bank market determined rates.
Banks, importers and individuals who also engage in round-tripping or arbitrage (buying funds from the Central Bank of Nigeria’s official market at low rate and resell in the parallel market at higher rates) – will not be able to do so anymore.
The above scenario has shown that you need an alternative currency for your business in Nigeria.
That is why you need Bitcoin for your business transactions in Nigeria and abroad. What is Bitcoin? Many People have asked this question several times. That is why I keep educating people in Nigeria about Bitcoin in my various Blog posts.
Bitcoin is a digital currency (also called crypto-currency) that is not backed by any country’s Central bank or government (even the CBN of Nigeria).
Bitcoins can be traded for goods or services globally. It can be accepted as a means of payment. They are stored in a digital wallet which you can have it freely online in Nigeria.
As i am writing now Bitcoin is worth about $452 which is about 97,000 Naira.
You should know that Bitcoin are virtual currencies which are not handle physical for purchases but are used electronically.
Bitcoin is a digital currency of payment. Many big companies like WordPress, Overstock.com, and Reddit accept Bitcoin, and a growing numbers of brick and mortar stores are starting to accept them internationally as well. More than $1.5 billion worth of bitcoins are currently in circulation around the world, with millions of transactions occurring daily.
Needless to say, the popularity and usage of Bitcoin is picking up very quickly as more and more businesses and individuals are becoming aware of its benefits and advantages over traditional currencies.
That is why Nigerians should be among the economies of the world using Bitcoin.
Start using Bitcoin and avoid facing the problem scarcity of dollar in Nigeria.