Naira Depreciates To Record Low, As Dollar Trades At N1,410 /$1

The naira collapsed to its lowest level ever against the dollar as it on Thursday traded for N1,410 per dollar at the parallel market.

The Thursday quote was N45.00 weaker than N1,365 recorded at the close of trading on Wednesday.

GWG.ng reports that the depreciation of the naira to its lowest point in history is reflective of the severity of the current economic challenges that has made the dollar unavailable.

Market analysts attribute the recent depreciation of the naira to a consistent surge in demand for dollars since the commencement of January. The primary contributors to this heightened demand include is attributed to businesses actively seeking to restock goods or acquire raw materials, necessitating a higher demand for foreign exchange.

Individuals also pursuing overseas studies have also played a significant role in driving the demand for dollars. This trend is likely connected to the need for tuition payments and related educational expenses.

The departure of diaspora Nigerians, particularly noticeable after the holiday season, has contributed to the increased demand for foreign currency. The departure of individuals from the US and other foreign countries has had a notable impact on the parallel market.

With schools abroad reopening, international students are actively restocking their foreign currency reserves to meet impending school fees and other financial obligations. 

The unprecedented depreciation marks the lowest point in the history of trading between the naira and the US dollar, raising concerns about potential economic ramifications.

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