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The Nigerian naira reached an unprecedented low of 999 per US dollar within the official market. This decline aligns with the ongoing currency pressure stemming from dollar shortages, mirroring the situation in the parallel market. The naira dropped to 1,100 per dollar in the black market.
The Nigerian naira reached an unprecedented low of 999 per US dollar within the official market. This decline aligns with the ongoing currency pressure stemming from dollar shortages, mirroring the situation in the parallel market. The naira dropped to 1,100 per dollar in the black market.
The freefall of the naira in the unofficial market has been compounded by the removal of currency restrictions on the official market. These restrictions had previously propped up the naira’s value. The central bank has announced plans to intermittently intervene in the foreign exchange market to bolster liquidity, following the lifting of an eight-year ban on certain items accessing dollars on the official market.
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Last month, the naira had already surpassed the 1,000 naira per dollar mark on the black market. This continued devaluation is largely driven by the overflow of excess dollar demand from the official market into the informal market. Analysts expect these trends to continue for some more time. The Federal Government to cushion the impact of inflation and consequent devaluation of the currency has taken a number of steps in recent days, including raising of minimum wages.
