The Nigerian naira has hit an all-time low of N1,400 against the US dollar in the parallel market, defying recent interventions by the Central Bank of Nigeria to stabilize the national currency.
Amid persistent dollar scarcity, Bureau de Change operators confirmed the naira’s further depreciation, citing ongoing uncertainty and high demand in the foreign exchange market.
Operators reported selling rates of N1,400/$, with indications that the situation may worsen in the coming days.
Despite efforts to mitigate the currency’s decline, including the settlement of FX backlogs and the acquisition of an oil-for-cash loan facility, the naira’s fall continues to exert pressure on the economy and Nigerians.
Central Bank Governor Olayemi Cardoso expressed optimism for market stabilization in 2024, citing reduced petroleum imports and recent policy shifts towards a market-determined exchange rate.
However, the IMF and industry experts highlight structural and market uncertainties contributing to exchange rate volatility, with projections suggesting further depreciation to N1,500/$ in the near future.
As stakeholders grapple with the naira’s unprecedented decline, concerted efforts are underway to improve liquidity and enhance coordination between fiscal and monetary policies to facilitate genuine price discovery in the FX market.
