Naira falls low at parallel market trades at N1,730/$

The Nigerian naira took a nosedive on Monday, hitting a new all-time low of N1,730 per dollar in the parallel market, also known as the black market. This represents a staggering 8.13% depreciation from the previous day’s rate of N1,600/$ and fuels anxieties about the currency’s future stability.

While the official market, tightly controlled by the Central Bank of Nigeria (CBN), currently holds the naira at N445/$, the stark difference between the two rates highlights the growing demand for dollars outside official channels. Analysts attribute this demand to several factors, including:

Despite recent CBN interventions, dollar inflows into Nigeria remain constrained due to lower oil prices and a slowdown in foreign investment. With the ongoing global inflation, the cost of importing essential goods like fuel and food has risen, further pressuring the demand for dollars.

The naira’s depreciation has far-reaching consequences for Nigerians. Imported goods become more expensive, leading to inflationary pressures and eroding purchasing power. Businesses reliant on imported materials face higher production costs, potentially impacting job creation and economic growth.

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Experts offer mixed forecasts for the naira’s future. Some believe the CBN may further tighten monetary policy to curb inflation and attract foreign investment, potentially strengthening the currency. Others caution that deeper structural reforms, such as diversifying the economy away from oil dependence, are needed for a sustainable recovery.

Meanwhile, Nigerians grapple with the immediate impact of the weakened naira. Citizens of the  country on a daily basis, struggle to afford basic necessities, while businesses face tough decisions about pricing and production. The government’s inability to manage the situation and restore confidence in the currency reflect this latest development.

Tandu Emmanuel

Tandu is a Blogger, PR, Writer, Web Designer & Digital creator. Focus on promoting Educative content in AFRICA and the world at large. He is also a passionate expert in the world of profitable career pursuit.

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