The Naira has depreciated to N1,600 per dollar in the Nigerian Foreign Exchange Market, marking a N31 drop from the previous day. The widening gap between official and parallel market rates has raised concerns about inflation, foreign exchange reserves, and the broader Nigerian economy, with experts anticipating continued challenges.
The Naira has experienced a significant decline, hitting N1,600 per dollar in the Nigerian Foreign Exchange Market (NFEM) after months of hovering around the N1,500 mark. The Central Bank of Nigeria (CBN) reported an increase in the official exchange rate from N1,569 per dollar on Thursday to N1,600, marking a N31 depreciation in a single day.
In the parallel market, the Naira also weakened to N1,565 per dollar, up from N1,555. This change has led to an alarming widening of the gap between the official and parallel exchange rates, which increased to N35 per dollar from just N14.
The depreciation has raised concerns about Nigeria’s growing economic challenges, including inflation, foreign exchange volatility, and dwindling reserves. Financial analysts suggest that these fluctuations may continue to strain the Naira, with potential implications for businesses and citizens reliant on a stable currency.
As the country grapples with these issues, many are left questioning the future stability of the Naira and its impact on Nigeria’s broader economic outlook. With ongoing global pressures and local challenges, the exchange rate issue remains a critical topic for policymakers and stakeholders alike.
