The Naira has experienced a historic decline against the Euro, reaching a record low of N1960 per Euro in the parallel market.
This represents a significant drop of 5.36% or N105 compared to the previous day’s rate of N1,855.
The unprecedented depreciation underscores the persistent demand pressures on the currency, further eroding its value.
The decline comes amid a continuous devaluation of the Naira in the parallel market, driven by factors such as heightened inflation.
The National Bureau of Statistics (NBS) reported a surge in the inflation rate to 29.90% in January 2024, up from the previous month’s rate of 28.92%.
The worsening inflationary environment contributes to the challenges facing the Naira.
Despite efforts by the Central Bank of Nigeria (CBN) to boost foreign exchange (forex) supply through various policies, the Naira continues to struggle against major foreign currencies.
The CBN’s interventions have aimed at stabilizing the forex market and managing the Naira’s value, but challenges persist.
In the parallel forex market, where unofficial trading occurs, the Naira also depreciated against the US Dollar. The exchange rate was quoted at N1,880/$1, indicating a 2.66% decrease from the previous day’s rate of N1,830.
The British Pound (GBP) also witnessed a decline, standing at £1/N2260, down by 2.21% compared to the previous day’s rate of £1/N2,210.
