Naira to Dollar Depreciates 7.72%, How Will This Affect the Nigerian Economy.
The naira has hit a new low against the dollar, closing at N803.9 per dollar at the investors and exporters (I&E) foreign exchange window on Friday. This is the highest intra-day rate ever recorded since the introduction of the window in April 2017.
The depreciation represents a 7.72 percent fall from the N746.28 recorded on Thursday. The naira hit an intra-day high of N829 and a low of N689.34 before it settled at N803.9.
A total of $46.9 million in FX value was traded at the I&E window on Friday.
The depreciation of the naira is a sign of the country’s economic woes. The Nigerian economy is currently in recession, and the government is struggling to attract foreign investment. This has led to a shortage of foreign currency, which has put pressure on the naira.
The depreciation of the naira will make it more expensive for Nigerians to import goods and services. This will likely lead to higher inflation and a decline in living standards.
The government has said that it is taking steps to stabilize the naira. However, it is unclear whether these measures will be enough to prevent the naira from further depreciating.
Impact of the Depreciation of Naira to Dollar.
The depreciation of the naira will have a number of negative impacts on the Nigerian economy. These include:
- Higher inflation: The depreciation of the naira will make it more expensive for Nigerians to import goods and services. This will likely lead to higher inflation, as the prices of imported goods and services will rise.
- Reduced investment: The depreciation of the naira will make Nigeria a less attractive destination for foreign investment. This is because foreign investors will be less willing to invest in Nigeria if their investments are not protected from the depreciation of the naira.
- Reduced exports: The depreciation of the naira will make Nigerian exports less competitive in the global market. This is because Nigerian exporters will have to sell their goods and services at a lower price in order to be competitive.
- Increased poverty: The depreciation of the naira will likely lead to increased poverty in Nigeria. This is because the poor will be disproportionately affected by the higher prices of goods and services.
Final word on Naira to Dollar.
The depreciation of the naira is a serious problem for the Nigerian economy. The government needs to take urgent action to stabilize the naira and prevent it from further depreciating. If the naira continues to depreciate, it will have a devastating impact on the Nigerian economy and the lives of ordinary Nigerians
