Naira’s Freefall: Soon We’ll Need a Microscope to Find Its Value

Nigeria’s naira is facing a currency crisis as it reached a staggering record low of 1,100 naira per US dollar on the black market, as reported by abokiFX.

The decline follows a recent plunge on the official market, which saw the naira hit an all-time low of 980 naira to the dollar.

This decline in the naira’s value has been exacerbated by the removal of currency restrictions on the official market, leading to increased pressure on the unofficial market, where the naira trades more freely.

The situation has prompted the central bank to step in periodically to inject liquidity into the foreign exchange market.

In an effort to stabilize the currency, the central bank recently lifted an eight-year ban on certain items that were previously restricted from accessing US dollars through the official market.

Despite these interventions, the naira’s woes persist as it struggles to maintain its value.

This currency crisis underscores the economic challenges facing Nigeria, including excess demand for US dollars in the informal market, exacerbating the naira’s woes.

As the situation unfolds, it remains to be seen how Nigeria will address its ongoing currency woes.

Source: Reuters