The unification of exchange rates by the Central Bank of Nigeria has led to a continued downward slide of the naira to the dollar, due to liquidity crunch, speculations, and other challenges. The naira traded for 876/$ at the parallel market on Sunday. The exchange rate has not been stable for some time now, with the naira being bought and sold at 850/$ and 876/$.
Chief Executive Officer, of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said the foreign exchange market was evidently under pressure as a result of a number of factors, including the unprecedented 15% increase in money supply between May and June 2023. This surge in monetary growth is unprecedented and has had an effect on the exchange rate.
As of Friday, the naira traded at an intra-day high of 855/$ and a low of 665/$ with a total turnover of $77.99m. The current situation is causing things to get more expensive, and it is important for the government to take action to stabilize the exchange rate.