The Nigerian naira has reached a new low in its weeks-long downward spiral, plummeting to a staggering N1210 against the U.S. dollar in the parallel market.
The alarming depreciation, as published by Aboki FX, casts a shadow of uncertainty over the nation’s economic stability.
The persistent decline of the naira is a source of concern and a spotlight on the challenges associated with President Bola Tinubu’s fiscal policies.
Despite the far-reaching consequences, including inflation and diminished economic purchasing power, Mr Tinubu has undertaken what his cabinet refers to as strategic moves, such as the petrol subsidy removal, which was met with resistance and scepticism but reflects an attempt to reduce the government’s financial burden and promote a more market-driven economy as well as the decision to adopt a clean float foreign exchange management.
The presidency says the measures will allow the naira to establish its value through the open market forces.
On September 26, the naira witnessed an unprecedented historical low, dipping to N1000 against the U.S. dollar. Since then, the currency has lost 17 per cent of its value.
The devaluation has made foreign exchange transactions inaccessible, especially in the parallel market, where a substantial percentage of the country’s financial transactions occur.
The repercussions of the currency depreciation are far-reaching. It affects businesses and citizens grappling with rising prices and economic uncertainty.