The Nigerian naira has hit an alarming low in the black market, now trading at N1,900 per dollar, with projections suggesting it may soon reach N2,000. This sharp decline represents a 3.95% drop in under 24 hours, driven by severe dollar shortages.
Despite the Central Bank of Nigeria’s (CBN) recent measures, such as cracking down on black-market traders and attempting to boost official dollar supply, these interventions have had little impact on stabilizing the naira. Economic experts attribute the currency’s rapid depreciation to factors such as dwindling forex reserves, limited inflows from crude oil exports, and economic uncertainties.
With the naira continuing to lose value, the economic implications for Nigeria are concerning. The federal government had set a 2024 budget with a benchmark exchange rate of N700 per dollar, but with the parallel market rate now nearly triple that, further devaluation and inflation seem inevitable.
