What is happening with Naira/dollar rate on Binance

[KiaKia]

Is it true that the CBN is dumping USDT on Binance P2P to drop the value of Naira? This is what many are saying after Naira dropped back to 900+ range since few days now, it looks like Binance P2P is where all the mess is coming from? Or it's not?

To all the Nigerians on the forum, what do you think about this? Is The P2P responsible for the massive surge in Naira to dollar rate? And I read that the CBN once call for the ban of Binance P2P because they believe its the reason why the Naira keeps losing value against the dollar, what do you think?

My own personal thoughts is before Binance P2P there was few numbers of platforms that Nigerians use for swapping their BTC into Fiat, and there was no attention like this, Luno platform is a good example, so why now?

[Charles-Tim]

Is it true that the CBN is dumping USDT on Binance P2P to drop the value of Naira? This is what many are saying after Naira dropped back to 900+ range since few days now, it looks like Binance P2P is where all the mess is coming from? Or it's not?

To all the Nigerians on the forum, what do you think about this? Is The P2P responsible for the massive surge in Naira to dollar rate? And I read that the CBN once call for the ban of Binance P2P because they believe its the reason why the Naira keeps losing value against the dollar, what do you think?

Not true.

P2P also has nothing to do with CBN.

This thread in Nigeria local board is in English which you can use to understand the reason for the recent naira price appreciation: Naira hits highest level since September 20th, trade as high as N972 on Binance

Edit:
Oh! All not in English but let me quote this:

The new CBN governor said he would address the backlog of unpaid foreign exchange commitment. The Federal Government through the Central Bank of Nigeria, has commenced the payment and this is what stated to have been the reason for the recent increase in naira price.

https://punchng.com/naira-gains-as-cbn-pays-banks-6-7bn-forex-backlog/
https://www.legit.ng/business-economy/money/1561653-dollar-set-crash-n1000-cbn-finally-finds-solution-forex-challenges/
superior.

[SmartGold01]

Binance p2p is not the problem the thing is our government are playing politics over this why because when you go to bank to buy dollars they will say no dollars and will ref you to Aboki trade where they gives all the dollar to roadside seller to sell at higher price higher than bank rate and return profit for them. Lemme explain further; if a dollar is 750 in our Nigerian bank they will give to roadsides seller to sell at 1000 or 1200 then will return 750 to bank, then among the remaining balance is to be shared between themselves and also to pay those workers who sells at the roadside. Then those who trades on binance p2p uses the current price which is being traded on the Aboki trade (roadsides) to place on the exchange. So in my opinion Binance is not our problems the real case is that the government should stop playing politics over everything and for that bank managers needs to be questioned as well because it's a collective business.

[Orpichukwu]

To all the Nigerians on the forum, what do you think about this? Is The P2P responsible for the massive surge in Naira to dollar rate? And I read that the CBN once call for the ban of Binance P2P because they believe its the reason why the Naira keeps losing value against the dollar, what do you think?

I don't see anything wrong with Binance, and they don't have any negative impact on the high rate of the dollar to the naira. The thing is that the country has failed to implement a good working money policy, and they don't have a balanced economy. The high demand for the dollar is not just on the crypto market; it's also out there for those leaving the country and those who import goods into the country.
 
Aside from Binance, Nigeria is now into real crypto trading and forex. They need to buy the dollar in order to use it and buy the currency of their choice. To reduce the price and rate of the dollar to naira is not about pumping in some of the countries reserve money into the forest market. How much do the countries think they will have to push in every month in order to sustain the market? The dollar demand is high, and any amount they push in will be exhausted; it's just a matter of time.
 
What the country needs to do is be productive, give external investors reason to come and trade in the country, and make the demand for the naira increase. When foreigners have what they need from the country and they can only get such products by using the local currency for trade, the country's currency value will increase.
 
The government's actions are similar to those of a crypto project with no good use case to attract good demand for its coin. When the liquidity provided by the project owners is exhausted and the coin is left to survive on its own, the price will crash.

[hugeblack]

Binance p2p is not considered a representation of the exchange rate, but rather a reflection of supply and demand. Therefore, we cannot judge the decline in the exchange rate, but rather it depends on demand and supply, as I remember in Venezuela the opposite happened, as the dollar/bitcoin price was higher than the official exchange rate, so that I bought Bitcoin in the local currency and sold it. At the same moment, Bitcoin and the dollar will make a profit, so whenever you find high demand and low supply, the exchange rate will be different and may change every hour.

[Zaguru12]

Is it true that the CBN is dumping USDT on Binance P2P to drop the value of Naira? This is what many are saying after Naira dropped back to 900+ range since few days now, it looks like Binance P2P is where all the mess is coming from? Or it's not?

It is big true because CBN can never dump USDT on any exchange, this drop of value of USDT you experienced on binance in last two days is not related to Binance only but is experience in all exchanges having the NGN/USDT trading pair. The reason why this is happening is because the Naira is gaining value against the traditional USD and this in turn is affecting the rate of USDT because USDT is said to be pegged 1:1 with the USD (although many disbelief this). So with USDT been pegged with USD anything that happens with it in the traditional market will affect the USDT.

The reason why the Naira actually gained value a bit was according to reports that the Nigerian government had taken $10 billion to issue to banks so that there will be more availability of USD in the market (that’s like increasing liquidity) as they perceived that dollar hoarders (aboki Fx) have been the reason why the Naira has been losing ground against the Dollar. This report was what cause the FOMO.

Binance p2p is not the problem the thing is our government are playing politics over this why because when you go to bank to buy dollars they will say no dollars and will ref you to Aboki trade where they gives all the dollar to roadside seller to sell at higher price higher than bank rate and return profit for them.

If you ask me I will say this is not only the government playing the politics here but rather the commercial banks we have in Nigeria. I would have faulted the government but they own 90% of the banks in Nigeria, it is this banks that have actually hoarded the naira and sold them to black marketers as you have pointed out. I drew my conclusion on this since the government stop the apex bank from setting the rates for foreign exchange and allowing I&E to do that.

If we all look at the this Naira Saga one will come to a conclusion that the fiat currency can be manipulated just anyhow to suit the whales or the government and this is why one needs to incline to holding bitcoin than all this fiat.

[EarnOnVictor]

Is it true that the CBN is dumping USDT on Binance P2P to drop the value of Naira? This is what many are saying after Naira dropped back to 900+ range since few days now, it looks like Binance P2P is where all the mess is coming from? Or it's not?

To all the Nigerians on the forum, what do you think about this? Is The P2P responsible for the massive surge in Naira to dollar rate? And I read that the CBN once call for the ban of Binance P2P because they believe its the reason why the Naira keeps losing value against the dollar, what do you think?

My own personal thoughts is before Binance P2P there was few numbers of platforms that Nigerians use for swapping their BTC into Fiat, and there was no attention like this, Luno platform is a good example, so why now?

Don't take it too far, the CBN that doesn't recognize the USDT can't dump it, so it's a misconception. You might also want to know what is happening on the Binance P2P platform is almost the same thing with the parallel market, they work similarly all the time, and there is no manipulation here.

What is causing the current appreciation of the Naira is simply the reversal of the trend where consumer confidence is being rekindled towards the country. The CBN recently cleared the FX backlogs of $6.7 billion owed by paying banks the backlogs of the foreign-currency forward contracts. The USD/NGN market reacted so well to it and the rest is speculative in nature which has turned the market bearish since then.

You might also want to read my response here.

[KingsDen]

The government of Nigeria and her financial institutions have been the greatest manipulators of the naira. The individual person's that are in the government deal with the dollar and as such they don't mind if the dollar gains more strength than the naira.
On the issue that the government had always refused to take responsibility of the fall of naira. Nigerians will also recall that there was when the government accused Aboki FX as the cause of naira decline and they banned the FX and the naira continued to fall.
Binance is an exchange that uses the rate of the black market, why is Binance p2p accused of manipulating the naira. It is laughable.

[Franctoshi]

Aside from the news that came out which involves the Central Bank of Nigeria CBN clearing of $6.7 billion backlog of forex owed, I do still believe the Nigeria FX market is hugely manipulated by this entity, seeing that the majority of investors were rushing and heavily banking on the US dollar as the value of Naira keeps depreciating, the entity saw it was a very nice opportunity to crush the market and they came out with the news and sell to the late comers thereby taking advantage of the spread.

[Mate2237]

Is it true that the CBN is dumping USDT on Binance P2P to drop the value of Naira? This is what many are saying after Naira dropped back to 900+ range since few days now, it looks like Binance P2P is where all the mess is coming from? Or it's not?

To all the Nigerians on the forum, what do you think about this? Is The P2P responsible for the massive surge in Naira to dollar rate? And I read that the CBN once call for the ban of Binance P2P because they believe its the reason why the Naira keeps losing value against the dollar, what do you think?

My own personal thoughts is before Binance P2P there was few numbers of platforms that Nigerians use for swapping their BTC into Fiat, and there was no attention like this, Luno platform is a good example, so why now?

Move the thread to local board for proper communication. Many users are not coming to this place to see this thread here so I advise your move the thread to local board. https://bitcointalk.org/index.php?board=275.0. CBN can't dump USDT in Binance because it is one of the exchange values so if they removed it will affect their business because most of the people that using Binance uses USDT to save their coins because it stableness. Where is the link to the CBN allegation of banning Binance from the country. I will once again ask you to mine there thread to local board.

[Charles-Tim]

Move the thread to local board for proper communication. Many users are not coming to this place to see this thread here so I advise your move the thread to local board. https://bitcointalk.org/index.php?board=275.0.

If he is not a Nigerian, there is not need of moving the thread to Nigeria local board. It is better as it is on the English board.

He has also got the answer he needed already.

CBN can't dump USDT in Binance because it is one of the exchange values so if they removed it will affect their business because most of the people that using Binance uses USDT to save their coins because it stableness. Where is the link to the CBN allegation of banning Binance from the country. I will once again ask you to mine there thread to local board.

It is even the work of the SEC to regulate exchanges, not CBN. And there is no clear crypto regulation yet in Nigeria which can make such a thing to happen.

[Fivestar4everMVP]

Well, as it is currently, the dollar is back above 1000 naira at the moment, and let me say this that personally, I believe that binance p2p have nothing to do with the current lose in value of the naira against the dollar, the central bank of Nigeria have been making a lot of bad policies which have dragged the value of the naira down against the dollar, but like we all know here in Nigeria, authorities hardly own up to their mistakes, rather, they will look for one entity or the other to blame for the result of their own mistakes.

And the central bank of Nigeria blaming binance p2p and calling for its ban is nothing but them chasing clouts, how can they be blaming binance p2p for the naira losing value against the dollar when they are the ones making bad policies which has lead to this, for example, there was a time it was said that ordinary citizens can no longer buy dollar directly from CBN, which made a lot ot people in the country state patronizing bureau de change guys who sell the dollar at a black market  rate, this policy and many other is the reason why the naira is losing value - but I like said before, they will never own up to their own mistakes, but will always look for some one to blame.

[Mate2237]

If he is not a Nigerian, there is not need of moving the thread to Nigeria local board. It is better as it is on the English board.

He has also got the answer he needed already.

Okay. I thought he is from Nigeria and since he is not from there then it is better keep the thread here in the general board. And one thing I will still add to what others have said, the NGN/USD in Binance is not the same with the Nigeria stock exchange price. I don't know if other people also noticed this. What I exchanged from the black marketers is different from the Binance rate. This days NGN/USD is having some conflicts that thy are drifting who will go down for the other. Last two days dollar was drastically going down but today it getting some appreciation.

But let see what will happen in the next three months. According to some analyst the president might reduce NGN/USD exchange to 1 naira equal to 1 dollar but I don't think that can be possible in the country again.

[Gozie51]

I can't see a reason that binance P2P for usdt/USD for Naira should be dragged into Nigerian falling economy. Corruption is the ban of the Nigerian Naira. If we go to Nigerian banks that is suppose to dish out dollar in exchange of Naira, it is not available and you are forced to go to black market to buy and it is not regulated when the government was suppose to be the one regulating.

The government need to put amenities up that will begin to reengineer the economy into production and not consumption, so why the talk about binance P2P, this is just pure politics going on with Nigerian system.

[Charles-Tim]

I can't see a reason that binance P2P for usdt/USD for Naira should be dragged into Nigerian falling economy. Corruption is the ban of the Nigerian Naira. If we go to Nigerian banks that is suppose to dish out dollar in exchange of Naira, it is not available and you are forced to go to black market to buy and it is not regulated when the government was suppose to be the one regulating.

The government need to put amenities up that will begin to reengineer the economy into production and not consumption, so why the talk about binance P2P, this is just pure politics going on with Nigerian system.

There is nothing like that. If there is anything like it, it is fake. Read what I posted and read the link, which is responsible for the reason naira appreciate in price lately if compared with other foreign currencies, not only United States dollar. CBN has no power on Binance, and there is not regulation yet that will make such a thing to be possible. And if something like that would be done, it can not be done through the CBN but through regulatory body like the SEC.

[Hispo]

I can't see a reason that binance P2P for usdt/USD for Naira should be dragged into Nigerian falling economy. Corruption is the ban of the Nigerian Naira. If we go to Nigerian banks that is suppose to dish out dollar in exchange of Naira, it is not available and you are forced to go to black market to buy and it is not regulated when the government was suppose to be the one regulating.

The government need to put amenities up that will begin to reengineer the economy into production and not consumption, so why the talk about binance P2P, this is just pure politics going on with Nigerian system.

It is not about that P2P system being dragged or not by regulators or other centralized entities, but in reality, anything that happens in centralized banks and decisions taken by Nigerian authorities can have a meaningful impact on the price of the USDT for Nigerians.
As far as I know, the Nigerian government does not have any power over Binance, and the price is subjected to pure speculation.

If tomorrow the government of Nigeria decided to liquid a lot of USD for Naira in their own national system, it will certainly impact the price is the USDT in binance as well.