Emmanuel OchayiThe Nigerian Naira closed the year at an unprecedented exchange rate of N907.11 per dollar at the official market, signifying a 26.8% depreciation since June 14th, amid a tumultuous year for Africa’s largest economy.
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Join our WhatsApp ChannelDespite a slightly improved closure compared to the previous day’s rate of N1,043/$1, the Naira has faced a 49% depreciation from its year-opening rate of N461.5/$1, sparking worries of a deepening currency crisis.
The Naira’s plunge marks historical lows, breaching the N1,000/$1 threshold for the first time and sliding further to N1,215/$1 on the black market by year-end.
Efforts by the Central Bank have not curbed this downward trend, raising concerns about the forthcoming business year.
Market dynamics indicate potential ongoing volatility, especially without foreign investment inflows.
Companies with forex balances may witness sizable gains due to the conversion at the NAFEX rate of N1,034, while those with dollar obligations might experience losses, impacting financial statements.
Government agencies are also expected to align with the NAFEX rate, reflecting the currency’s challenges in official records.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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