The Nigerian naira has hit a new low, weakening to ₦1,705 per dollar in the parallel market today, marking a sharp decline in its value. This comes amid growing concerns over the country’s foreign exchange reserves and escalating demand for the U.S. dollar in the black market.
Economic analysts attribute this continued devaluation to several factors, including persistent inflation, dwindling oil revenues, and the Central Bank of Nigeria’s limited ability to intervene due to reduced forex reserves. Despite efforts to stabilize the naira through various policy adjustments, the local currency has struggled against major global currencies in recent months.
Market watchers believe that the sustained dollar scarcity has been pushing importers and businesses to the parallel market, further widening the gap between the official exchange rate and the black market. The official exchange rate still remains around ₦780 per dollar.
This depreciation is likely to compound the financial struggles of many Nigerians, as the cost of imports, including essential goods, will rise, exacerbating inflationary pressures already being felt across the country. Economists are calling for urgent government intervention to restore stability to the forex market and address the underlying economic challenges.
