Naira crashed to NGN575/$1 at the close of business at the parallel market on Friday, December 10, 2021, in Lagos, Nigeria’s commercial city.
When contacted, a Bureau De Change operator in Lagos stated that it exchanged for NGN572/$1 (buy) and NGN565/$1 (sell) on Thursday.
The best exchange rate the naira has ever got since its crash was NGN525/$1. At a time it was nearing NGN580 before making some gains, since then it has been fluctuating.
Nigeria’s foreign exchange crisis began since the Central Bank of Nigeria (CBN) removed BDCs from the supply chain in its July announcement.
Several measures put in place by Godwin Emefiele, the CBN governor, to resolve the FX crisis is yet to yield any result at the time of publication. Although, some of the policies are long term.
A few weeks ago, the World Bank cautioned the CBN to stop defending the naira with Nigeria’s external reserves, which comes with many implications on the economy.
Prof. Leo Ukpong, a Professor of Financial Economics has also made a similar call. But the apex bank says it’s effectively managing the situation.
Nigeria’s economy depends on imports, thereby putting pressure on the forex while the political office holders continue to rake in billions of naira in estacode through the questionable and wasteful foreign trips to overseas countries.