Naira and Dollar
The naira experienced a decline against the US Dollar in the official market, closing the week at N1,537.96/$1, and N1, 650 at parallel market.
This decrease coincided with a significant downturn in forex turnover, which plummeted by 74% to $84.10 million.
Both official and black-market exchange rates witnessed a devaluation of the Nigerian Naira against the dollar, further compounded by a substantial surge in inflation as reported by the National Bureau of Statistics (NBS) for January 2024.
The inflation rate surged to 29.90%, marking a significant increase from the 28.92% recorded in the previous month
The naira has come under a very severe attack in recent times, defying several interventions by the Central Bank of Nigeria (CBN) thereby worsening the cost of living crisis and inflation in the country.
Our correspondent reports that the naira has depreciated by over 50 per cent in the last five months.
Recall that the dollar first hit N1,000 in the parallel market in September 2023. It oscillated within that rate until the New Year when it started experiencing a free fall.
The depreciation of Nigeria’s currency is despite the federal government receiving a $2.25bn foreign exchange support from the AfreximBank as well as the offset of part of the unsettled forex obligations.
The CBN had also initiated a series of measures in recent times in a bid to stop the free fall of naira.
But the currency appears to be defying the various interventions as it depreciated further on Thursday at the parallel market amidst the decline in forex turnover.
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