The Nigerian Naira has depreciated by over 60% against the US dollar in the past year. Ricardo Salinas Pliego, the third richest man in Mexico, recently stated that the Naira is now worth less than a satoshi and urged people to buy Bitcoin as a hedge against the depreciation of the fiat currency.
The Nigerian government has taken a series of measures in an attempt to stabilize the exchange rate as the Naira has become the worst-performing currency against the US dollar. Previously, there were accusations that Binance, Coinbase, Kraken, and other major exchanges were manipulating the exchange rate, which led to the ban of these exchanges.
However, the Nigerian government’s efforts have not been effective, and the Naira continues to depreciate against the US dollar. According to Google Finance data, the Naira has plummeted by over 32% against the US dollar this year, reaching a rate of 0.00075/USD. In the past year, it has even depreciated by over 60%.
The depreciation of the Nigerian Naira is attributed to the local foreign exchange shortage. Nigeria is one of the largest oil-producing countries in Africa, but its refining capacity is limited, resulting in a heavy reliance on imports for most energy products and a significant outflow of US dollars.
Danelee Masia, a senior economist for sub-Saharan Africa at Deutsche Bank, previously stated that due to concerns about dwindling reserves, international investors have weak demand for the Naira, leading to a stagnation in its appreciation. The Naira is easily influenced by the seasonal demand for US dollars, and it is expected to further decline when the seasonal demand peaks in the third and fourth quarters.
Amid the continuous depreciation of the Naira, Ricardo Salinas Pliego, the founder of Salinas Group with a net worth of over $14 billion, shared data on Twitter, stating that the Naira is now worth less than a satoshi and recommended buying Bitcoin as a hedge against the risk of fiat currency depreciation. When asked about his recommendations for ETFs, stocks, and cryptocurrencies, he specifically mentioned Bitcoin, demonstrating his confidence and trust in this cryptocurrency.
Ricardo Salinas Pliego is known for his anti-government stance and his support for Bitcoin-related policies in Mexico. In 2021, he praised Bitcoin for its extraordinary characteristics and referred to it as the gold of the modern world. His Azteca Bank became the first bank in Mexico to accept Bitcoin.
Ricardo Salinas Pliego revealed in 2022 that he has 60% of his liquid investment portfolio allocated to Bitcoin, while the remaining 40% is invested in hard assets such as oil, natural gas, and gold. He believes that Bitcoin is a wise investment choice and criticizes bonds as the worst investment among all assets.
According to Ricardo Salinas Pliego, Bitcoin should be present in every investor’s portfolio. He criticizes fiat currency as “fraud” and does not have a positive view of Dogecoin, stating that those who hold Dogecoin will “remain poor.”