Uncertainty Mounts As Dollar Hits N1,600

The foreign exchange crisis deepened on Thursday as the local currency continued its downward spiral, reaching an exchange rate of N1,600 to a dollar in the parallel market, according to findings.

This development follows closely on the heels of the local currency’s historic low at the official market, surpassing N1,500 to one dollar just days ago.

The naira has faced relentless pressure in recent times, despite numerous interventions by the Central Bank of Nigeria (CBN), exacerbating the country’s cost of living challenges and inflationary pressures.

Reports indicate that the naira has depreciated by more than 50 percent over the past five months.

It’s worth recalling that the dollar passed the N1,000 mark in the parallel market back in September 2023. Since then, it has remained within that range until the turn of the New Year when its decline accelerated.

Despite the Nigerian government receiving a $2.25 billion foreign exchange support from AfreximBank and settling some outstanding forex obligations, the depreciation of the naira persists.

The CBN has implemented various measures in recent times to stem the naira’s slide, but these efforts have yet to yield significant results. The currency’s further depreciation on Thursday in the parallel market, coupled with declining forex turnover, underscores the ongoing challenges in stabilizing Nigeria’s currency.