The Nigerian Naira has fallen to an all-time low as it exchanged for N1,830 per dollar in the parallel market, commonly referred to as the black market.
This depreciation on Wednesday morning marks a 7.10% decline compared to the previous day’s closing rate of N1,700.
The observed depreciation underscores the severity of the current economic challenges, with this drop representing the lowest point in the historical performance of the Naira.
The continued devaluation of the Naira in the black market is compounded by a substantial surge in inflation, as reported recently by the National Bureau of Statistics (NBS) for January 2024.
The inflation rate surged to 29.90%, indicating a significant rise from the 28.92% recorded in the previous month.
Despite efforts by the Central Bank of Nigeria (CBN) to bolster the supply of foreign exchange (forex), the decline of Naira persists.
The Naira settled at N1,876.50/$1 in the cryptocurrency market as of 12 pm. The cryptocurrency trading platform Binance recently limited trading on the Nigerian currency for the USDT stablecoin to address unusual currency movement and protect users.
Unconfirmed reports suggest that the CBN and other government agencies ordered Binance to set a cap on Nigerian traders selling USDT.
Binance, however, emphasized that its platform is market-driven and not intended to be a proxy for currency pricing in Nigeria.
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