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Nicholas Anthony, a policy analyst at the Cato Institute's Center for Monetary and Financial Alternatives, has stated that if the Nigerian government had refrained from implementing "on‐again, off‐again price controls," they might not be blaming the cryptocurrency exchange Binance "for the naira’s latest crash." Anthony shared these insights on April 11 in a commentary posted on the Cato Institute's website titled "Nigeria’s Government Is Blaming Binance for Its Own Mismanagement."
"Taking accountability for mismanaging the naira begins with letting the market, and the market alone, decide the exchange rate for the naira," said Anthony. "The government's on‐again, off‐again price controls have largely made a mess of the economy. In fact, had the government not placed such a heavy hand on exchange rates, it's unlikely that Binance would have ever been blamed for the naira's latest crash considering part of the accusation was that Binance manipulated the exchange rates."
In his commentary, Anthony pointed out that the Nigerian government had engaged in "years of currency mismanagement." Consequently, many Nigerians turned to cryptocurrency as a means to gain exposure to alternative currencies. When the naira crashed again in February, government officials singled out cryptocurrency as the cause. Officials then invited Binance to send representatives to Nigeria to discuss the situation. However, upon arrival, these employees were detained and placed under house arrest. Among them was Tigran Gambaryan, an American citizen and former U.S. federal government agent.
