In a historic dip, the Nigerian naira exchanged at N1,005 to the United States dollar at the parallel market, revealing the challenges faced in managing the national currency amidst high inflation under President Bola Tinubu’s leadership.
While the central bank’s official rate had seemingly stabilized at N779.55 per dollar over the past week, the naira’s value plummeted significantly in the parallel market, where most foreign exchange transactions occur in Nigeria.
Daily exchange rates from various parallel market sources reported that on Tuesday morning, the dollar was sold at N1,000 and closed at N1,005 per dollar.
This situation highlights the ongoing struggles with the naira’s value, which has faced a steep decline since 2016, partly attributed to President Muhammadu Buhari’s influence over the central bank’s activities, leading to decreased international investment and increased demand for the dollar within Nigeria.
Former Central Bank Governor Godwin Emefiele criticized Abokifx in 2021, accusing it of manipulating the exchange rate in the parallel market.
Despite Abokifx’s temporary shutdown in September 2021, the naira’s depreciation at the parallel market continued. Critics suggested that Emefiele should have focused on stabilizing the naira rather than pursuing his 2023 presidential ambitions, which seemed to have diverted his attention from his role as Nigeria’s top banker.
The naira’s decline against the dollar has persisted, even with Tinubu’s efforts to allow the free market to determine its value. When Tinubu assumed office on May 29, it was trading at about N650.
Both the presidency and the central bank have yet to comment on the naira’s historic fall.
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