In a turn of events, the Nigerian Naira witnessed a depreciation, hitting a historic low of N1,410 against the US dollar on Thursday.
This 3.29% decline, amounting to N45 weaker than the previous day’s closing rate of N1,365, underscores the severity of current economic challenges.
Market analysts attribute the alarming depreciation to a surge in demand for dollars, fueled by businesses restocking goods, individuals pursuing overseas studies, and the departure of diaspora Nigerians.
With schools abroad reopening, international students are actively restocking their foreign currency reserves, raising concerns about potential economic ramifications.
Prime Business Africa reported a 3.18% decrease in forex turnover to $56.60 million on January 24th, 2024.
The official NAFEM window recorded the naira closing at N882.24 to a dollar, marking a 0.41% decrease compared to the previous day.
The parallel market quoted an exchange rate of N1365/$1, highlighting the currency’s vulnerability.
Governor Yemi Cardoso acknowledged the undervaluation of the naira and pledged coordinated efforts with the Ministry of Finance to achieve genuine price discovery. He outlined the Central Bank’s commitment to inflation-taming policies, market discipline, and addressing infractions promptly.
Cardoso’s optimism about decreasing inflation in 2024, targeted at 21.4%, aims to create a more predictable cost environment, stimulate investment, fuel growth, and generate job opportunities.
Additionally, strategic partnerships and efforts to increase foreign exchange reserves are underway, with hopes pinned on the anticipated resumption of operations in the country’s refineries.
The unfolding situation demands a careful balancing act to stabilize the naira, ensuring sustainable economic growth amid global uncertainties.
Danger Looms As Naira Depreciates To N1,410/$1 At Black Market Amid High Demand, Economic Challenges
Latest from Business
Just In: Court Denies Bail For Binance Executive Amid Money Laundering Charges
The Federal High Court in Abuja has dismissed the bail application of Tigran Gambaryan, a detained executive of Binance, following opposition from the Nigerian government. Gambaryan, who serves as the head of
Customs Duty Exchange Rate Hits N1530/$ Amid Naira Depreciation Continues
In a development impacting import economics, the Nigerian Customs Service (NCS) has adjusted its exchange rate for duty collections to N1530/$, up from N1492/$, reflecting a direct response to the naira’s depreciation.
Just In: Tension As Fire Gut NNPC Terminal In Lagos
Early this Friday morning, fire engulfed the newly rebranded NNPC Terminal on Kayode Street, Marine Beach, Apapa, Lagos State. Eyewitnesses described a massive explosion around 11 am, prompting frantic efforts to contain
Yango Demonstrates Commitment to Africa Technology Growth and Entrepreneurship Empowerment at CEO Africa Forum 2024
Yango Marks Its Second Attendance at the Africa CEO Forum as the Largest Ride-Hailing Player on the Continent by Country Footprint. With Six Years in Africa, Yango Continues to Revolutionize Everyday Tech
Demand For Hair Extensions Dips As Prices Rise In Enugu
The high cost of hair extensions has led to significant drop in demand by customers who now seek alternative cheaper brands.
Follow Us