Currency Crisis: Naira Hits N1,900 Against Dollar In Black Market – Experts Analyze Fallout

Currency Crisis: Naira Hits N1,900 Against Dollar In Black Market – Experts Analyze Fallout

Despite intensified efforts by the federal government to curb foreign exchange market speculation, Nigeria’s currency, the Naira, suffered a further decline against the US Dollar at the parallel market, hitting a staggering rate of N1,900…..READ ALSO Former Presidential Aide Pins Naira’s Decline On Crypto Platforms, Urges Immediate Action

In response to the government’s crackdown on forex speculators, which led to the arrest of some operators in major cities like Abuja, Lagos, and Kano, the Naira’s depreciation persisted. Reports indicated that the Dollar was being exchanged for N1,900 in Abuja and Kano, and N1,800 in Lagos.

Meanwhile, at the official market, the Naira experienced a modest improvement, closing at N1,551.24 compared to its earlier rate of N1,574.62, as reported by the Nigerian Autonomous Foreign Exchange Market (NAFEM).

In light of these developments, economic experts have offered insights into the need to stabilize the foreign exchange market. National Security Adviser, Nuhu Ribadu, directed security agencies including the Nigeria Police Force, EFCC, Nigeria Customs Service, and Nigeria Financial Intelligence Unit to clamp down on forex speculators. This coordinated initiative aims to protect Nigeria’s foreign exchange market from manipulative activities that undermine the Central Bank’s efforts to stabilize the economy.

However, critics argue that there are more effective approaches to addressing currency instability. Despite the government’s collaborative efforts with security agencies to combat illicit practices in the forex market, some analysts believe that a comprehensive economic strategy is necessary to tackle the root causes of the Naira’s depreciation.

As the government intensifies its crackdown on unlicensed Bureau De Change operators, traders in markets like Lagos’ Allen Avenue and Kano’s Wapa Bureau de Change market express concerns over the impact of these measures on their businesses. While security operatives carry out raids to apprehend speculators, traders remain vigilant amid fears of further disruptions in the forex market.