Amidst a backdrop of severe dollar scarcity in Nigeria, the Naira has plunged to a record-low of N1,460 against the US dollar at the black market.
Traders observed the local currency plummeted to a fresh low against the dollar at the parallel market on Tuesday.
The local currency had already hit an unprecedented low of N1,348.63 per dollar at the official market or the Nigerian Autonomous Foreign Exchange Market (NAFEM) in the previous trading session.
Investigations reveal a surge in demand for dollars driven by legitimate needs such as Form A applications for Business Travel Allowance (BTA), Personal Travel Allowance (PTA), school fees, and medical expenses.
The scarcity of dollars is placing immense strain on importers and travelers who rely heavily on the parallel market to meet their foreign exchange needs.
Traders and market analysts anticipate further weakness in the Naira in the coming days as the dollar shortage persists unabated.
With dwindling daily FX market turnover and a heightened demand for dollars, the situation poses significant challenges to the stability of Nigeria’s currency market and the broader economy.
Efforts to address the scarcity and stabilize the Naira remain critical as the country navigates through this period of economic turbulence.
