The Nigerian Naira extended its decline to a record-low of N1,730 against the United States Dollar on the parallel market.
This unprecedented depreciation exacerbates the economic challenges faced by citizens and businesses alike.
The plummeting value of the naira is attributed to intense demand for dollars by speculators and individuals traveling for various purposes such as business, tourism, education, and healthcare.
Currency dealers report that this surge in demand has caused significant pressure on the market rates, further weakening the naira’s position.
Amidst the currency crisis, operatives from the Economic and Financial Crimes Commission (EFCC) undertook raids on several Bureau De Change (BDC) outlets in Abuja, detaining currency traders suspected of engaging in speculative activities against the naira.
The EFCC’s actions underscore the severity of the situation and the government’s determination to address the currency’s decline.
The widening gap between the official and parallel market rates, coupled with concerns of round-tripping, reflects the gravity of the situation.
Despite recent efforts by the Central Bank of Nigeria to bolster forex supply through policy interventions, the naira’s continued depreciation underscores the need for sustainable solutions to stabilize the currency and restore market confidence.