By Gwurld4026 
Understanding the Naira’s Depreciation: Causes and Effects
The Naira has depreciated further in the parallel market, trading at approximately N1,739 to the US dollar. This marks a significant decline, reflecting ongoing economic challenges, including foreign exchange scarcity and inflationary pressures.
The widening gap between the official exchange rate and the parallel market rate underscores challenges within Nigeria’s forex market, where demand for dollars heavily outweighs supply.
This depreciation affects import-dependent businesses and raises the cost of goods and services, particularly essentials, contributing to the rising cost of living for Nigerians.
The Central Bank of Nigeria (CBN) and policymakers face increased pressure to implement measures that can stabilize the currency, such as encouraging local production, fostering forex inflows, or adjusting policies to address the demand-supply imbalance in the forex market.