The Nigerian Naira has hit a record low of N1,410 against the US Dollar on the black market, reflecting a 3.29% drop from the previous day's closing rate. The sudden depreciation is attributed to increased demand for dollars, notably from businesses restocking, individuals pursuing overseas studies, and the return of diaspora Nigerians.
The forex turnover declined by 3.18% to $56.60 million, with the official market experiencing a 0.41% decrease, closing at N882.24. In the parallel market, the Naira depreciated to N1365/$1, showing a 0.37% decrease. The Central Bank, recognizing the Naira's undervaluation, pledges coordinated efforts with the Ministry of Finance for genuine price discovery.
Governor Yemi Cardoso assures the implementation of inflation-taming policies and discipline in the forex market. He anticipates a decline in inflationary pressures in 2024, aiming for 21.4%, with potential positive impacts on investment, growth, and job opportunities. The unfolding economic situation raises questions about strategies to stabilize the Naira and its broader implications.
