The Nigerian Naira Hits Record Low Against Major Currencies
Downward Trend Despite Regulatory Efforts
The Nigerian Naira has continued its downward trend against major currencies, reaching a record low on Monday. Despite efforts by the Central Bank of Nigeria (CBN) to manage the currency value through floating it on June 14 and lifting forex restrictions on commodities, the Naira’s depreciation has persisted.
Exchange Rate Volatility
According to Aboki FX, the Naira started the day with an exchange rate of N1,200 per dollar in the unofficial market. However, due to high dollar demand, it escalated to N1,205 per dollar by noon. Similarly, the Naira depreciated against the British Pound and Euro, with buying and selling prices rising significantly within hours.
Factors Influencing Depreciation
Analysts attribute the continuous fall in the Naira’s value to various factors, including demands from the 43 items restored to access foreign cash and school fees. The Association of Bureaux De Change Operators of Nigeria (ABCON) denies involvement in the Naira’s depreciation, instead blaming unlicensed forex dealers for speculative activities.
Startup Coverage and Recognition
Despite the challenging economic situation in Nigeria, Legit.ng’s startup coverage has earned them a nomination for the #StartupSouth Awards 2023.
This article provides a unique perspective on the Nigerian Naira’s downward trend against major currencies. Despite regulatory efforts, the Naira’s value continues to decline. The exchange rate has experienced significant volatility, with prices fluctuating throughout the day. Various factors, including demands for foreign cash and school fees, contribute to the Naira’s depreciation. Despite these challenges, Legit.ng’s startup coverage has garnered recognition and a nomination for an esteemed award.
