Nigeria has taken drastic measures in to attempt to stabilize its plummeting national currency, the naira, by blocking access to major cryptocurrency exchanges, reported the Financial Times. This move comes as the Nigerian government attempts to crack down on currency speculation amid record lows for the naira.

JUST IN: Nigeria blocks access to Coinbase, Binance and Kraken as their national currency falls to record lows, Financial Times reports.

— Bitcoin Magazine (@BitcoinMagazine) February 22, 2024

The Nigerian Communications Commission (NCC) issued orders to telecoms companies late on Wednesday to restrict consumer access to websites of major cryptocurrency platforms like Binance, Coinbase, and Kraken. As a result, consumers experienced only intermittent access to these sites on Thursday.

Bayo Onanuga, Special Adviser Information and Strategy to the President of Nigeria, took to X to say a local report of the government blocking access to the exchanges was correct.

Premium Times is correct.

Forex Crisis: Nigerian govt blocks Binance, OctaFX, Coinbase, others https://t.co/cq6DoxqInj

— Bayo Onanuga (@aonanuga1956) February 22, 2024

Cryptocurrency exchanges have played a big role in establishing unofficial market prices for the naira, with platforms like Binance often serving as benchmarks for local foreign currency exchange rates. The government’s move to block access to these platforms is an effort to regain control over the currency valuation of the naira.

“Binance, facing regulatory showdown in many countries, and causing disruptions in the currency market, should not be allowed to dictate the value of the naira, not on its crypto exchange platform,” Onanuga further stated. “Crypto should be banned in our country or else this bleeding of our currency will continue unabated.”

Nigeria’s adoption of rash methods to defend its currency, including shutting down price-setting websites and declaring certain cryptocurrency entities illegal, highlights the challenges the country faces in managing its economic stability. Nigeria’s national currency has lost over 70% of its value since their central bank lifted its dollar peg in June.

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Analysts have criticized the new ‘de-risking’ strategy that the U.S. is currently using against China, explained by U.S. National Security Advisor Jake Sullivan in April, clarifying that national security was over economic costs. These de-risking policies might affect bilateral trade, which fell by 11.2% to $217.9 billion during the first four months of 2023.

‘De-Risking’ Is a Euphemism for Decoupling U.S. and China Relations, Analysts State

Analysts are criticizing the ‘de-risking’ strategy of the US against China. The term, which was mentioned by the U.S. National Security Advisor Jake Sullivan last month, is used to explain the position that the U.S. is adopting in front of the growth and policies of China on the Russia-Ukraine conflict. And while U.S. Treasury Secretary Yanet Yellen has previously stated that a full decuple of the economies of the two countries would be “disastrous,” Chinese analysts believe that this is just a semantics choice.

Zhou Xiaoming, a senior researcher at the Centre for China and Globalisation, has stated that this ‘de-risking’ strategy has ‘nothing short’ of decoupling in action, as it seeks to limit the economic interaction with China to just the necessary. Xiaoming explains:

The U.S. will continue to trade with China as it has learned that totally cutting economic ties between the two is neither feasible nor desirable. Nevertheless, the Biden administration still appears intent on building a “small yard” with a “high fence”.

This approach would be responsible for the inclusion of more Chinese companies in the called ‘entity list’ of the Office of Foreign Assets Control (OFAC), and the recent tightening of the export controls on chips to China, but might expand to other fields in the future, Xioaming states.

Possible Effects on Trade

Xiaoming believes that this de-risking strategy seeks to also undermine the relations that China has with the world, stating that ‘Washington clearly sees decoupling as critical to its strategy of reducing China’s economic ties with the rest of the world.”

However, this might also be affecting American consumers and companies. According to the General Administration of Customs of China, bilateral trade has fallen by 11.2% year over year during the first four months of 2023, after having registered a $690 billion record in 2022.

The European Union (EU) has also recently proposed to de-risk its relationship with China, facing a strong answer from Foreign Minister Qin Gang, who stated:

China does not export its system, and it follows a path of peaceful development, pursues a mutually beneficial strategy of opening up, stays true to and safeguards the international order underpinned by international law, and opposes hegemonic, domineering and bullying practices.

What do you think about the de-risking strategy applied by the U.S. government against China? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Polygon climbed higher in today’s session, as cryptocurrency markets marginally rebounded on Wednesday. The global crypto market cap was up by nearly 1% earlier in the day, as Tuesday’s losses eased. Solana, on the other hand, remained lower, as it fell towards a key price floor.

Polygon (MATIC)

Polygon (MATIC) edged higher on Wednesday, as the token moved away from a recent point of support.

Following a low at $0.954 on Tuesday, MATIC/USD jumped to a peak of $0.9925 earlier in today’s session.

As a result of the move, polygon bounced from a recent price floor of $0.950, after recently falling to a multi-week low.

Looking at the chart, Wednesday’s surge led to the relative strength index (RSI) colliding with a long-term ceiling of 40.00.

At the time of writing, the index is tracking at 39.22, with MATIC at a level of $0.9813.

Despite earlier gains easing, there is still optimism that polygon could climb back above $1.00 this week.

Solana (SOL)

On the other hand, solana (SOL) remained in the red, as the token moved back towards a recent price floor.

SOL/USD retreated to a low of $21.36 earlier in today’s session, less than 24 hours after the token traded at a high of $22.37.

Wednesday’s drop in price has sent SOL close to its long-term support point at $21.00, which was last hit a week ago.

From the chart, it appears that today’s decline came as the RSI made a move for its own floor at 45.00

As of writing, price strength is tracking at 45.17, with bears likely to push for a breakout in the coming hours.

Should this occur, there is a chance that SOL could move closer to $20.00 in the coming days.

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Do yo expect solana to hit $20.00 this week? Let us know your thoughts in the comments.

Eliman Dambell

Eliman was previously a director of a London-based brokerage, whilst also an online trading educator. Currently, he commentates on various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.