Naira Hits New Low: What N1,548 per Dollar Means for Nigerians
The Nigerian Naira has recently experienced a depreciation against the U.S. Dollar. On January 13, 2025, the Naira closed at ₦1,548.89 per dollar in the official market, marking a decline of ₦5.86 from the previous rate of ₦1,543.03.
In the parallel market, commonly referred to as the black market, the Naira also weakened slightly, closing at ₦1,667 per dollar compared to ₦1,665 earlier.
This depreciation is attributed to ongoing foreign exchange challenges in Nigeria, including limited supply and increased demand for the U.S. Dollar. These factors have exerted pressure on the Naira, leading to its recent decline in value.
The Central Bank of Nigeria (CBN) has been implementing measures to stabilize the currency, such as opening a 42-day window in December to allow Bureaux De Change (BDC) operators to buy foreign exchange worth $25,000 per week from the spot market.
Despite these efforts, the Naira’s value continues to fluctuate due to persistent forex challenges. Analysts suggest that addressing the underlying issues, such as diversifying the economy and improving foreign exchange reserves, is crucial for achieving long-term stability in the Naira’s exchange rate.
It’s important to note that exchange rates can vary between the official and parallel markets, and they are subject to rapid changes influenced by economic policies, market demand, and other factors.