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  • Business - Market Data
  • Updated: December 11, 2021

Naira Hits All-Time Low

Naira Hits All-Time Low

The naira this morning fell to its lowest level in the parallel market since the FX liberalization program began. It is currently trading at NGN574 per USD, down from NGN561.05 per USD the previous day.

The information gathered by correspondents shows that there is a sudden surge of buying pressure on the US dollar, hence the increase in exchange value.

This buying pressure can be attributed to traders of goods excluded from the CBN FX support items list increasing their demand for US dollars on the black market to buy goods from China and other countries.

Understandably, this demand is because of such traders’ desire to prepare for the Christmas and New Year celebrations.

The effect of this sudden but painful change is a sharp increase in the price of consumer goods and services.

Price changes for commodities in the country is no longer news as everyday citizens wake up to a painful addition to the cost of things in the market.

The situation in the country is already bad enough and this is certainly going to add fuel to the already burning situation in the country.

Unemployment is at an all-time high of 34%, with one in every three people unemployed. Wages are not improving and living standards are actually getting worse.

Many people expect the CBN governor to intervene much further in the currency situation, perhaps by making FX available for some of the restricted item imports or by devising more creative measures to flood commercial banks with enough US dollars.

This assertion comes on the back of an increased inflow of US dollars from crude oil sales and an increase in diaspora remittances.

When our correspondents sorted the opinions of traders and FX dealers in the busy Ikorodu market, Ikorodu, Lagos State, we discovered that everyone was bitter about this new fall.

Amosu Yakubu, a local currency exchanger, expressed shock when yesterday evening the price changed.

"What are we going to do?" he asked. "This is what the country has turned to. We just have to pray to God that things change soon because things are getting bad, "he concluded.

Adebayo Folorunsho, a passerby, wasn’t even aware of the new exchange rate, but once he got hold of the information, he expressed fear and worry.

"Christmas is just less than two weeks away. How are we going to cope with the changes in the prices of things in the market?" he asked.

For now, we are yet to get an opinion from an expert on this matter.

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