Understanding the Record Low of Naira at N1,740 in the Parallel Market
The Nigerian Naira recently depreciated further in the parallel market, reaching an all-time low of around N1,740 to the U.S. dollar.
This decline reflects ongoing challenges in Nigeria’s foreign exchange market, influenced by high demand for the dollar, limited forex supply, and complex economic conditions.
Despite efforts by the Central Bank of Nigeria (CBN) to stabilize the currency, the continued demand for dollars in the parallel market has exacerbated the depreciation.
The CBN has been implementing policies to support the official exchange rate, but the disparity between the official and parallel market rates remains a challenge for businesses and individuals dealing with foreign transactions.
This development has significant implications for inflation and the cost of living, as imported goods become more expensive, putting further pressure on an already strained economy.