Nigeria’s currency, the Naira, has depreciated further, exchanging at ₦1,705 per US Dollar in the parallel market, down from ₦1,655 per dollar just a week ago. This reflects ongoing demand pressures and supply shortages in the market, leading to a significant decline.
The Naira’s recent depreciation follows a period of relative stability, where exchange rates fluctuated between ₦1,645 and ₦1,655 per dollar. Economic analysts link the decline to foreign exchange supply gaps, sparking concerns over increased prices for imported goods and inflation.
The official exchange rate also took a hit, dropping to ₦1,541.94 per dollar in the Nigeria Autonomous Foreign Exchange Market (NAFEM). Experts warn that this depreciation could signal a return to the steep declines seen in 2023.
