The Nigerian government has banned crypto and forex trading companies like Binance and Octafx from offering their virtual trading services to Nigerians living in Nigeria.
A very stupid, draconian decision that will complicate the already fragile dollar crisis
Let me explain.
I still maintain my position that speculators on Binance practically drove the price of USD from 730 to 1,900 as of this afternoon and would have continued the damage if they were not stopped, but banning innocent retail investors like Myseif who are not into speculation is actually not a wise thing to do.
Aside from the fact that this move will drive these speculators underground to continue the damage on our local currency , I believe that this speculation thing on Binance is very simple to solve.
Introduce a managed float exchange rate system.
Peg your exchange rate to a fixed price in the range of 640–800.
Liase and compel virtual currency companies like Binance to go back to the old practice of selling USDT to traders at a fixed price, just as it was prior to 2020, and then enable banks to make it easy for customers to buy USDT with their ATM card, and viola, watch speculators disappear because they will be rendered useless overnight.
Banning Binance and other virtual trading companies from operating in Nigeria is covering a deep injury without treatment with a bandage, hoping it will go away.
The sad news is that the injury will fester.
We need quality thinkers in this government.
The absence of quality thinkers in this government is making young people poorer.
It is the reason why this government has been doing so many trials and errors with the economy.
I’m tired.
