The Nigerian Naira has experienced a significant decline while the UK Pound has surged to unprecedented heights on the black market.
The exchange rate has reached over N1000 to £1, leaving many Nigerians worried about the future of their currency.
This alarming depreciation of the Naira against the UK Pound has been observed over the past few days, marking a distressing trend for the country’s economy.
The persistent surge in demand for the UK Pound has been a significant driving force behind this ongoing depreciation as Nigerians continue to seek opportunities and stability abroad, the demand for foreign currencies, especially the Pound, has soared.
This mounting pressure on the Naira has contributed to its decline and weakened its value against major currencies.
The depreciation of the Naira against the Pound is just one aspect of a larger issue within Nigeria’s foreign exchange market. The partial float of the Naira has redirected demand away from official rates for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), prompting more individuals to turn to the black market.
The widening gap between official and black-market exchange rates is a growing concern for analysts, as it may put additional pressure on the country’s official exchange rate market. If the supply of foreign currencies does not improve and the disparity continues to widen, further depreciation of the Naira can be expected.