National Telescope national telescope newspaper
By Ekpenyong Emmanuel
The Nigerian Naira has hit a new low, depreciating to N1,650 per dollar in the parallel market on Tuesday. This latest decline marks a continuation of the currency’s downward trend, with the Naira losing value rapidly in recent days.
In a stark contrast, the official foreign exchange market saw the Naira appreciate slightly, gaining N1 to trade at N1,537 per dollar. However, the significant disparity between the parallel market and the official Nigerian Foreign Exchange Market (NFEM) remains a concern, with a margin of N113 per dollar on Tuesday.
The widening gap between the two markets has raised eyebrows, with experts warning that the Naira’s decline could have far-reaching consequences for the economy. The currency’s depreciation is attributed to a combination of factors, including dollar shortages, high demand for foreign exchange, and dwindling confidence in the Naira.
As the Naira’s value continues to erode, Nigerians are facing higher prices for imported goods and services. The decline is also affecting businesses, which are struggling to import raw materials and equipment due to the increased cost of foreign exchange.
The Central Bank of Nigeria (CBN) has been working to stabilize the Naira, but its efforts have been hindered by a decline in oil prices and reduced foreign investment. Critics argue that the CBN’s management of the foreign exchange market has exacerbated the Naira’s decline, adding to the country’s economic woes.
With the Naira’s value continuing to plummet, the government is under pressure to take decisive action to address the economic challenges facing the country. As the situation continues to unfold, one thing is clear: the Naira’s decline is having a profound impact on the lives of Nigerians, and a solution is urgently needed.
