Naira Hits Record Low Of N1,410 /$1 At The Black Market

Naira experiences unparalleled depreciation, with the black market value of N1,410 per US dollar.

The depreciation of the Nigerian Naira has been unparalleled, with the black market value of N1,410 per US dollar being a record low. This represents a decrease of N45.00, or 3.29%, from the closing rate of N1,365 the day before.

Experts claim that the steep drop is indicative of how serious the nation's current economic problems are.

Experts in the market attribute the notable decline in value to an increase in demand for US dollars since the start of January.

The active replenishment of goods by businesses, the financing of studies abroad by individuals, and the departure of Nigerian diaspora following the holiday season are major factors contributing to this increased demand.

A significant amount of the rise in demand for foreign exchange has been driven by companies looking to buy raw materials and refill inventory. Demand has also increased as a result of people going overseas for education and Nigerians returning to their overseas bases.

The demand for foreign currency has also increased as a result of Nigerians living abroad leaving, especially after the holidays.

With schools abroad reopening, international students are actively restocking their foreign currency reserves to cover impending school fees and related expenses. Students are also securing funds for holiday allowances, contributing to the heightened demand.

The current depreciation marking the lowest point in the Naira's historical performance versus the US dollar, worries about possible economic fallout are warranted.