Emmanuel OchayiThe naira has experienced a 5.4% decline affecting both the official and black markets. The official rate on the NAFEM closed at N808/$1, while the parallel market saw N1170/$1.
This downturn marks a new low for the Naira, as it hasn’t faced such circumstances at the end of a week since July 14th, when it rested at N803.90.
The official market touched the N1,000 mark, reaching a record N999 during the week. Meanwhile, in the unofficial parallel markets, the quotes fluctuated wildly between N1,040 and N1,175/$1, with some transactions pushing the exchange rate as high as N1,200/$1. This 10% depreciation in just one week throws us back to the turbulent times of November 2022.
A common thread across all markets is the consistent weakening of the naira, hinting that there’s no respite in sight unless there’s an improvement in supply. Reports from the streets are filled with complaints of limited to no supply, leaving traders in despair.
Speculators are adding fuel to the fire, capitalizing on the removal of the ban on 43 items. The central bank’s decision to lift this ban has only exacerbated the exchange rate disparity, which started at N289/$1 and soared to N361.73/$1 by the end of the week.
As if the situation wasn’t enough, the total weekly turnover plunged from $646.6 million to a mere $423.9 million, emphasizing the extent of the crisis. With external reserves stagnant at $33.3 billion since September 6th, 2023, there’s growing concern that the apex bank has yet to inject the expected supply into the market.
READ ALSO: Naira Slides Further To N1,160/$1 In Parallel Market
To put it into perspective, Nigeria’s external reserve stood at $35 billion when the Tinubu administration took office, marking a 36% depreciation in the parallel market exchange rate since then. This state of affairs leaves many Nigerians uncertain about the future of their nation’s currency.
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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