The Nigerian Naira has experienced a sharp decline, reaching new lows against the US dollar, Closing at N996.75 per dollar in the official market and N1090 per dollar in the parallel market.
Despite expectations that recent moves by the Central Bank of Nigeria (CBN) to clear its foreign exchange backlog would instil confidence, the domestic currency’s value has continued to slide.
Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) reveals a 12.24% decline compared to the previous day, marking a new all-time low.
Forex turnover at the official NAFEM window significantly increased by 101.32%, reaching $228.54 million at the close of Thursday’s trading.
Meanwhile, the parallel market witnessed a 5.5% depreciation, quoting an exchange rate of N1090/$1.
According to Nairametrics, financial experts urged the CBN to implement bold strategies to reverse the Naira’s free fall.
Dr. Biodun Adedipe, founder of B. Adedipe Associates Limited, suggests de-dollarizing the economy by declaring local transactions in US dollars illegal. He emphasized the need to sell crude oil to local refineries in Naira rather than dollars.
As the official and parallel market exchange rates approach parity, concerns about the economy’s stability are escalating. Calls for transparency in dealings at the Investors and Exporters Window and broader market reforms are gaining momentum.
President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, warns currency speculators of impending consequences, stating that the CBN is prepared to counteract hoarding and substituting Naira for other currencies.
