Binance Not Responsible For Naira Decline – CEO Tackles FG

Richard Teng, Chief Executive Officer of cryptocurrency trading platform, Binance, has rejected accusations by President Bola Tinubu’s Administration that Binance is responsible for the decline of the Naira.

The government had claimed that Binance’s operations exacerbated the devaluation of the Nigerian currency.

In March 2024, the Nigerian Government demanded a staggering $10 billion fine from cryptocurrency trading platform Binance, citing its alleged contribution to the free fall of the Naira.

According to Bayo Onanuga, Special Adviser to President Tinubu, the fine was imposed due to Binance’s alleged illegal operations, which significantly exacerbated the devaluation of the Nigerian currency.

Onanuga in an interview with the BBC said, “The platform fixes the exchange rate for the country and it is an illegal rate. The CBN is the only authority that can fix the exchange rate for the country.”

He added, “Binance platform harbours people who fix the exchange rate which quickly affects the Nigerian economy for the time when Nigeria is trying to stabilize the economy.”

However, Teng in a statement on Tuesday argued that the government’s claim is unfounded, pointing out that the Naira’s downward trend continued even after Binance ceased its peer-to-peer services in Nigeria in February 2024.

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He emphasized that experts attribute the Naira’s historic plummet to the government’s decision to end the currency peg in June 2023.

“To everyone paying attention, this is not backed up by facts. Between 2021 and the end of 2022, the Naira traded between a relatively narrow range of USD1: 380 to USD1: 440.

“We have been offering P2P services as a value-added service for our users wishing to get exposure to crypto during that period of time.

“The end of the Naira’s currency peg by the Government in June 2023 caused the biggest fall in Naira’s history according to experts.

“It went from USD1: 460 in June 2023 to USD1: 900 by the end of 2023. The downward trend continued since.

“The Naira traded at a recent low of USD1: 1,660 on 31 July 2024, representing a 50% decline from the start of 2024.

“This downward trend continued despite Binance ceasing to offer P2P services in the country in February 2024.”