The Nigerian naira continued its downward spiral, hitting a new low of N1,720 to the US dollar on the parallel market on Wednesday, December 11, 2024.
This represents a significant depreciation of 2.99% compared to the previous day’s rate of N1,670.
Bureau de Change (BDC) operators in Lagos are currently buying the dollar at N1,700 and selling at N1,720, reflecting a widening gap between the official and parallel market rates.
The naira’s weakness can be attributed to several factors, including persistent dollar scarcity, rising inflation, and declining foreign exchange reserves.
The Central Bank of Nigeria’s (CBN) recent decision to halt dollar sales to BDC operators has further exacerbated the situation, forcing many Nigerians to turn to the parallel market for foreign exchange.
The divergence between the official and parallel market rates has widened significantly, with the gap now exceeding N175.
This disparity highlights the challenges faced by businesses and individuals in accessing foreign currency at official rates.
The naira’s depreciation has far-reaching implications for the Nigerian economy, including higher import costs, increased inflationary pressures, and reduced purchasing power for consumers.
The government and the CBN are under increasing pressure to implement effective measures to stabilise the currency and address the underlying economic challenges.
–.globalfinancialdigest.com
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