The Nigerian Naira declined further against the United States Dollar on the black market on Wednesday, according to currency traders.
The local currency was exchanged at N1,510 to a United States Dollar, a decline from N1490 it was traded on Tuesday.
Alhaji Isa, a forex trader, attributed the Naira’s depreciation to the classic principles of economics—demand and supply dynamics.
The scarcity of Forex and the recent official market rate hike contributed to the surge in the black market exchange rate.
Similarly, in the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM) saw the Naira depreciate by 9.9% to settle at N1,482.57/$1 from the previous day’s N1,346/$1.
Despite efforts by the government, including the discontinuation of premium motor spirit (PMS) subsidies and the liberalization of the exchange rate, the Naira continues to struggle.
Economic pressures mount as the weakening Naira contributes to soaring prices of goods and services and prompted calls for urgent intervention to stem the tide of economic instability.
