$1 Falls To N1,700, And N2,100 Is Now The Value Of A Pound Sterling

The naira continued its freefall on Monday, dipping to N1,700 against the dollar and N2,100 to a pound sterling as Nigeria's economy continues to hrt under President Bola Tinubu's watch.

This occurs despite the Central Bank of Nigeria's best efforts to stop the naira's free fall, as the currency reaches an all-time low compared to the US dollar and the British pound sterling in Nigerian history.

Even though the value of the naira was declining relative to the US dollar before Mr. Tinubu took office in May of last year, the depreciation of the naira quickened after the currency was allowed to float. The naira saw a historic decline in September, trading at N1,000 to the dollar on the black market. This event highlighted the shortcomings of Mr. Tinubu's attempts to control the country's currency in the face of uncontrollably high inflation.

The Association of Nigerian Licensed Customs Agents (ANLCA) protested in July that a decrease in vehicle imports into the country's ports was a result of the country's currency being floating. Naira Rates states that on January 31, the value of the currency dropped to N1,520.123 to the dollar.

Read: Naira Drops To N1,600 Per Dollar $1

This contrasts with the naira's depreciation of N38 in less than a day to N1,482.75 per dollar as documented in the official foreign exchange market on January 30. The official exchange rate, which traded at N1,470 per dollar from N1,425 on January 29, is now higher than the parallel market exchange rate for the first time since the COVID-19 period.

The monetary policy implemented by Mr. Tinubu's administration significantly contributed to the naira's subsequent decline following the currency's flotation. According to a Price Water Coopers report, Mr. Tinubu's economic policies, which eliminated fuel subsidies and combined several foreign exchange windows into a single Importer and Exporter, or I&E, window, severely depreciated the value of the naira by 98%.

In ‘Nigeria's Economic Outlook: Seven Trends That Will Shape Nigerian Economy in 2024,’ the leading global business advisory audit firm stated that Mr. Tinubu implemented policies that devalued the naira by almost 100% but attracted foreign investors because they were expected to boost the country's economy in 2024.

The value of the naira fell to N1000 versus the US dollar on September 26, marking an unprecedented historical low. Since then, the value of the currency has decreased by 17%. Concerns are raised by the naira's ongoing decline, which also highlights the difficulties with President Bola Tinubu's fiscal policies. The removal of the fuel subsidy, which was met with resistance and skepticism but reflects an attempt to lessen the government's financial burden and promote a more market-driven economy, as well as the decision to adopt a clean float foreign exchange management, are just two examples of what Mr. Tinubu has implemented what his cabinet refers to as strategic moves, despite the far-reaching consequences, which include inflation and diminished economic purchasing power.