The Nigerian Naira has continued its unprecedented freefall in value against the US Dollar.
Our national currency is now valued at N352 to USD1 on the parallel market, falling in value from N347 to the dollar yesterday.
While some market operators did sell at N352 – USD1 yesterday, the market rate appears to have been in flux between N347 – N352.
Foreign exchange dealers have said that the increasing pressure on the Naira is caused by high demand for the dollar by importers and speculators.
The Central Bank of Nigeria remains doggedly determined to maintain its policy of pegging the Naira to N197 – USD1.
Market analysts and CEO of Economic Associates Dr. Ayo Teriba, said the Nigerian economy should not have been allowed to deteriorate to its current point.
“This is 2016 and not 1986, 1992 or 1995; the conditions are not the same. The global environment has liquidity now that Nigeria can attract,” he said.
“The situation is not like 1986 when the global environment was tight.” Despite the economic turmoil caused by the Naira’s slump in value, President Muhammadu Buhari has reiterated that he will not consider devaluing the national currency.
The president believes that devaluing the Naira will only cause disaster for Nigeria’s poorest people and will in fact increase inflation.
If you want to keep track of the issues and events that will effect the economy and the strength of the Naira, you can read our updates on the price of oil and the Naira – US Dollar exchange rate on the parallel market.
If you want a sneak peak, here’s one of our fantastic infographics on the naira and crude oil prices.