The foreign exchange crisis in Nigeria deepened on Thursday as the local currency continued to depreciate, with the dollar reaching N1,600 at the parallel market.
This decline follows closely on the heels of the naira hitting an all-time low at the official market, surpassing N1,500 to one dollar.
In recent times, the naira has faced significant pressure, despite numerous interventions by the Central Bank of Nigeria (CBN), exacerbating the country’s cost of living crisis and inflation. Over the past five months alone, the naira has depreciated by more than 50 percent.
The dollar’s journey to N1,000 at the parallel market began in September 2023, maintaining that rate until the New Year when it began a rapid descent.
The depreciation of Nigeria’s currency persists despite the government receiving a $2.25 billion foreign exchange support from AfreximBank and partially offsetting outstanding forex obligations.
The CBN has implemented various measures in recent times to halt the naira’s decline, yet the currency continues to depreciate, particularly evident in Thursday’s further decline at the parallel market amidst dwindling forex turnover.
