Despite the Central Bank of Nigeria’s (CBN) injection of $500 million to address the backlog of verified foreign exchange transactions, the Nigerian Naira plummeted to a record low of N1,348.63 against the US dollar on Monday at the official market, also known as NAFEM market.
This represents a 33.87% depreciation compared to its previous close at N891.90 per dollar.
The unprecedented decline underscores the severity of the economic challenges facing Nigeria with the Naira breaching the N1,000/$ threshold for the sixth time.
At the black market section, the Nigerian Naira was traded at N1420 to a United States Dollar on Monday.
Despite efforts to bolster the foreign exchange market, including recent interventions by the CBN, the currency’s downward trend persists, raising concerns about its broader economic impact.
The depreciation is likely to exacerbate inflationary pressures and strain household budgets, while businesses face increased production costs and profitability challenges.
The situation highlights the urgent need for comprehensive measures to stabilize the Naira and restore confidence in the Nigerian economy.
