ENUGU, Nigeria (VOICE OF NAIJA) – The Nigerian naira has plunged to a new low, reaching N1,210 against the U.S. dollar in the parallel market, marking a concerning trend in its weeks-long depreciation.
This alarming devaluation, as reported by Aboki FX, raises doubts about the nation’s economic stability.
The report noted that the persistent decline of the naira is a cause for worry, highlighting the challenges associated with President Bola Tinubu’s fiscal policies.
Despite the broad-ranging consequences, including inflation and reduced economic purchasing power, Tinubu’s administration has implemented what it terms strategic initiatives.
These include the removal of petrol subsidies, which faced resistance and skepticism but aim to reduce the government’s financial burden and foster a more market-driven economy.
Additionally, the decision to adopt a clean float foreign exchange management is seen as an effort to let the naira find its value through open market forces, according to the presidency.
On 26 September, the naira witnessed an unprecedented historical low, falling to N1,000 against the U.S. dollar. Since then, the currency has lost 17 per cent of its value.
This devaluation has hindered foreign exchange transactions, particularly in the parallel market, where a significant portion of the country’s financial transactions takes place.
The repercussions of this currency depreciation are profound, affecting businesses and citizens grappling with rising prices and economic uncertainty.