The Nigerian naira suffered another significant blow on Friday, crashing to N1,600 per US dollar in the official Nigerian Foreign Exchange Market (NFEM) for the first time in three months.
Market Breakdown:
- Official Rate: N1,600/$ (from N1,569/$ on Thursday)
- Parallel Market: N1,565/$ (from N1,555/$ on Thursday)
- Rate Disparity: The gap between official and black-market rates widened to N35 per dollar from N14 previously
What This Means:
The latest depreciation marks:
- A worrying reversal of the naira’s brief stabilization around N1,500/$
- Growing pressure on Nigeria’s foreign exchange reserves
- Potential inflationary impacts on import-dependent sectors
Market Reactions:
Financial analysts attribute the slide to:
- Persistent dollar scarcity
- Increased demand from manufacturers and importers
- Speculative activities in the parallel market
CBN’s Challenge:
The widening gap between official and parallel rates presents fresh complications for the Central Bank’s efforts to unify exchange rates and stabilize the currency.
Looking Ahead:
All eyes remain on the CBN’s next moves as Nigeria’s economic managers grapple with sustaining the naira’s value amid ongoing forex supply constraints.
