The Nigerian Naira depreciated by 37.6% against the US dollar in January 2024 alone, closing at NGN1,455.59 at the end of the month, Nairametrics reports.
This sharp decline follows a relatively stable rate of NGN907.1/$1 at the end of December 2023. The black market also experienced a notable 17.3% depreciation, going from NGN1215 to NGN1470 against the greenback in the same month, raising concerns for businesses and individuals, according to the report.
The fall began in earnest on December 8, when the official rate dropped below NGN1000 for the first time.
Central Bank of Nigeria (CBN) governor Yemi Cardoso has publicly recognised the undervaluation of the Naira and has committed to achieving genuine price discovery in the foreign exchange market in 2024. To tackle issues like currency speculation and hoarding by Nigerian banks, the CBN has recently issued guidelines through a circular to minimise associated risks and control currency depreciation.
The CBN has said that it plans to collaborate with the Ministry of Finance to stabilise the exchange rate and implement inflation-taming policies.
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