- The naira plummeted to N1,600 to the dollar on the parallel market, exacerbating Nigeria’s foreign exchange crisis and inflation
- Despite interventions by the Central Bank of Nigeria, the naira has lost over 50% of its value in the last five months
The foreign exchange crisis worsened on Thursday as the local currency depreciated further, trading at N1,600 to the dollar on the parallel market.
This came just a few days after the local currency reached an all-time low on the official market, crossing N1,500 to one dollar.
The naira has recently come under severe attack, defying several interventions by the Central Bank of Nigeria (CBN), exacerbating the country’s cost-of-living crisis and inflation.
According to our correspondent, the naira has lost more than 50 percent of its value 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 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.