The Nigerian naira plummeted to an all-time low of N1,534.39 per dollar on Monday, accompanied by a staggering 64.69% drop in forex turnover to $89.61 million.
This significant decline, amounting to 4.19% or N64.42 weaker than Friday’s closing rate of N1,469.97, underscores growing concerns regarding the currency’s trajectory.
The unprecedented depreciation observed marks the lowest point in the historical performance of the naira, highlighting the severity of the prevailing economic challenges.
Despite recent efforts by the Central Bank of Nigeria (CBN) to bolster the foreign exchange market through interventions, the currency’s downward trend persists, prompting concerns about its potential impact on the broader economy.
This development is likely to aggravate existing inflationary pressures and further strain household budgets, particularly for those reliant on imported goods.
The implications for businesses, both large and small, are also significant, with potential increases in production costs and challenges in maintaining profitability.
The domestic currency depreciated by 64.42% to close at N1,534.39 to a dollar at the close of business, data from the NAFEM where forex is officially traded, showed.
In the cryptocurrency market where forex is sold using stablecoins, the Naira also crossed N1,506.65/$1.
The former President and Chairman Governing council of, the Chartered Institute of Stockbrokers (CIS) and the Managing Director, of Arthur Steven Asset Management Limited, Mr. Olatunde Amolegbe in an exclusive chat with TheTimes said for the exchange rate to be stable, market and participants confidence is key.