Barely five months after President Bola Tinubu ascended to power, Nigeria’s local currency, naira has soared to ₦1,040 per dollar under his watch.
AfroWorldNews understands that Tinubu’s predecessor, Muhammadu Buhari manifested poor economic management style in the value of naira, which traded from ₦157 per dollar to ₦439 at the official rate. At the parallel market, Nigerians saw naira soared to ₦720 per dollar at the black market from ₦200 before he took over.
While the Central Bank of Nigeria, CBN’s rate appeared to stabilize at ₦768 per dollar over the past week, the currency value has sunk to critical depths for those trying to access it at the parallel market, where most foreign exchange transactions are conducted in the country.
According to Abokifx, a website that aggregates daily rates for Nigerians using parallel market sources, the dollar sold at ₦1,040 in the early hours of Wednesday, October 19, 2023.
Meanwhile, this development emerged after the central bank authorized financial institutions in the country to sell foreign exchange freely at market-determined rates, aligning with Tinubu’s commitment to a single exchange rate regime.
What does floating the naira mean?
The Tinubu-led government enabled market forces to determine the exchange rate of its currency by floating the naira in June.
Previously, the CBN set the interest rates. The floating exchange rate allows buyers and sellers in the formal FX market to quote prices that are convenient for them.
This decision expands access to the dollar and decreases the requirement for foreign investors to conduct currency transactions through the CBN.
How much is naira, pound, and other currencies in the black market today?
- 1 GBP >>>>> ₦1,314.768
- 1 EUR >>>>> ₦1,123.734
- 1 CAD >>>>> ₦810.609
Afro World News