In a concerning economic development, the exchange rate between the Nigerian naira (NGN) and the United States dollar (USD) has hit a historic low, plummeting to N995 per $1 at the black market, as reported by a survey conducted by Stechitegist Media.
The drastic depreciation signifies a sharp decline in the value of the naira against the dollar, heightening worries about the country’s economic stability. As per the market data, individuals looking to purchase dollars are now required to pay as much as N995 for every US dollar, while those selling dollars are receiving approximately N985, closely approaching the significant threshold of N1000.
This new exchange rate trend, witnessed on a Thursday afternoon, points to the increasing pressure on the naira and the broader Nigerian economy. Factors such as dwindling foreign reserves, a growing trade deficit, and persistent inflation are believed to be contributing to this unfavorable exchange rate situation.
The authorities are faced with the urgent task of implementing measures to stabilize the currency and prevent further erosion of its value, which could have far-reaching consequences for both businesses and citizens across the nation. Addressing the root causes of this situation will be crucial to restoring confidence in the Nigerian economy and promoting a more favorable exchange rate for the benefit of all.