Naira Plunges to Record Low Amid Forex Market Turbulence

As Nigeria grapples with economic challenges, the nation witnessed a historic low in its currency value, as the naira plunged to unprecedented depths against the United States dollar. The black market recorded the naira closing at a staggering N1,500 per dollar, marking a significant decline from previous rates.

The Central Bank of Nigeria (CBN) sounded the alarm, cautioning forex dealers against engaging in unethical practices that could exacerbate the situation. In a circular released to authorised dealers, the apex bank warned against misinformation and market manipulation, emphasizing the need for transparency and adherence to ethical standards.

The downward spiral of the naira has sparked widespread concern among economists and members of the private sector. Analysts fear that the continued depreciation could lead to adverse effects such as business closures, job losses, and inflationary pressures.*

Efforts to address the forex market’s challenges have been met with mixed results. While the CBN has taken steps to clear the backlog of verified foreign exchange transactions, the currency’s value continues to plummet, reflecting underlying structural issues.

In response to the crisis, the Lagos Chamber of Commerce and Industry called for decisive action to curb speculation and bolster the naira’s stability. Industry leaders underscored the urgent need for policies that support local production and address the root causes of the forex volatility.*

Meanwhile, the CBN reaffirmed its commitment to restoring confidence in the forex market, pledging to clear outstanding obligations across various sectors. However, stakeholders remain cautious, calling for concerted efforts to address systemic challenges and promote sustainable economic growth.

Written by sdbLive