On Wednesday, January 31, 2024, Nigeria's currency, the naira, hit an all-time low, reaching 1,531 to the United States dollar on the official market. This development adds to the woes of the Nigerian economy, which has already seen the naira lose approximately 40% of its value since the beginning of the year. Data from FMDQ, a financial market infrastructure group, shows the naira closing at N1,482.57 per $1 on the official market, indicating a significant decline. Concurrently, the parallel market witnessed additional depreciation, with the dollar exchanging at N1,491.00 per $1. The Central Bank of Nigeria (CBN) intervened to clear outstanding dollar backlogs, resulting in a 10% depreciation from the preceding session. This decline underscores the ongoing challenge of dollar scarcity and increased demand beyond official channels. The significant depreciation of the naira carries broad economic implications. Enterprises dependent on foreign exchange will encount...
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