Panic As Naira Slumps Further Against Dollar

Panic gripped some traders over the continuous decline of Nigeria’s currency against the US Dollar.

The Naira has shown no signs of improvement so far as it has slumped further against the Dollar in the ,atest trading. On Thursday, it was observed that the exchange rate at the black market reached N1,355 for one US dollar. This downward trend comes five months after the dollar initially surpassed the N1,000 mark in the black market.

While the dollar’s strength persisted, it experienced a slight appreciation, closing at N902 compared to the previous rate of N931.23 per dollar at the close of business. This information is based on data from NAFEM, the official platform for forex trading.

Despite recent efforts to support the foreign exchange market, such as the $2.25bn assistance from AfreximBank and claims of improved forex obligation clearance by the Central Bank of Nigeria (CBN), the naira’s depreciation continues to impact the cost of living for Nigerians.

Reports indicate that the exchange rate fluctuated between N1,170 and N1,200 in the period between the end of December 2023 and the first week of January 2024. This occurred despite assurances from government officials that measures were in place for the naira’s rebound.

However, in recent days, the pressure on the currency has intensified, with the naira surpassing N1,300 to a dollar in the black market.