The foreign exchange crisis in Nigeria has deepened as the Nigerian naira surpassed the grim milestone of N1,000 to the US dollar in the parallel market, according to Daily Trust. A survey of popular black markets in Lagos showed that the dollar traded between N1,000 and N1,050 during the early hours of Thursday, before settling at N990 later in the evening. This alarming depreciation marks a significant gap from the Investors & Exporters FX window, where the naira closed at N738.
The disparity between the official and parallel markets has been steadily widening since the Central Bank of Nigeria (CBN) announced the unification of all foreign exchange segments in June. Despite these unification efforts, the parallel market remains active due to a scarcity of US dollars in the official market, operators say.
Economic experts have voiced concerns over the negative implications of the naira's depreciation in the black market. The weakening currency threatens to make doing business in Nigeria more challenging, causing prices of imported goods to skyrocket and driving inflation. To mitigate this crisis, experts suggest implementing sound policies and boosting local production to earn more foreign exchange.
Despite these economic challenges, the positive outlook for oil prices and recent nominations for key positions in the Central Bank offer some hope for the future stability of the naira. However, the government faces an uphill battle in addressing the root causes of the currency's free fall.
