In recent economic news, the value of the Nigerian naira in the parallel market has dropped to a staggering 1,410 per dollar, hitting a new low.
This represents a substantial decline of 3.66 percent from its previous rate of 1,365 per dollar, just two days prior.
Furthermore, the rapid depreciation of the naira has raised alarm bells among traders, economists, and ordinary citizens.
BDC Operators’ Rates of Naira/Dollar
Bureau de Change (BDC) operators, who play a significant role in the foreign exchange market, have set their buying rate for the US dollar at N1,400, with a naira selling price of N1,415.
These rates reflect the challenging conditions in the parallel market and the growing demand for foreign currency.
Official Market Performance of Naira/Dollar
While the black market witnessed a sharp decline in the naira’s value, the official market also experienced a depreciation, albeit at a slower rate.
On Wednesday, Jan. 24, the official exchange rate stood at N882.24 per dollar, down by 0.41 percent from its previous rate of N878.61 per dollar on Tuesday.
Central Bank’s Assessment
The naira’s recent depreciation follows CBN Governor Olayemi Cardoso’s statement on its undervaluation.
CBN’s assessment questions currency stabilization strategies and broader economic implications for Nigeria’s outlook.
In light of these developments, it is crucial for stakeholders to closely monitor the situation. Additionally, they should consider possible measures to address the ongoing currency devaluation.