Nigerian Naira has experienced a substantial decline, reaching an unprecedented low of N2040 per Great Britain Pound (GBP) in the parallel market exchange rate.
This marks a significant decrease of 5.39% or N110 compared to the previous day’s rate of N1,930.
The depreciation of the currency is attributed to persistent demand pressures, which continue to erode the currency’s value, as reported by Nairametrics.
The parallel market exchange rates have been witnessing a consistent devaluation, further aggravated by a notable surge in inflation.
According to the National Bureau of Statistics (NBS), the inflation rate for January 2024 stands at 29.90%, reflecting a 0.98% increase compared to the figures from December 2023.
Despite efforts by the Central Bank of Nigeria (CBN) to enhance forex supply, including measures such as halting international oil companies from remitting 100% of their forex proceeds abroad, the Naira’s value continues to face challenges, resulting in a continued decline.
In the parallel forex market, where forex is unofficially traded, the Note also depreciated against the dollar, reaching N1,655/$1.
This represents a 3.93% decrease from the previous day’s rate of N1,590. Furthermore, the Naira weakened against the Euro by 4.09%, closing at N1720/EUR1 compared to N1650/EUR1 reported the day before.
