The Nigerian naira experienced a significant decline, hitting an all-time low of N925/$1 on the parallel market on Wednesday. The surge in demand for foreign currency has outpaced its supply, exerting substantial pressure on the currency’s value.

Traders reported dollar exchange rates ranging between N880 and N890 in Lagos, underscoring the severity of the situation.

In contrast, within the official Investor and Exporter Window, the exchange rate concluded at N757.81/$1, while the NAFEX rate stood at N776.

Even the official market has not been immune to supply constraints, with daily turnover averaging at approximately $80 million since July.

The ongoing instability in the forex market has been a consistent concern since the Central Bank of Nigeria’s decision to liberalize the forex window on June 14.

Against this backdrop, President Bola Ahmed Tinubu, in his July 31 address to the nation, assured that the government would step in to stabilize the forex market when deemed necessary.

In alignment with addressing this issue, the acting Governor of the Central Bank of Nigeria, Folashodun Shonubi, stated during the July Monetary Policy Committee meeting that efforts are actively being undertaken to mitigate forex volatility.

As Nigeria navigates these economic challenges, careful monitoring and strategic interventions are vital to restore stability and foster a conducive environment for sustainable economic growth.

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