Food Prices Drop Due To Naira Appreciation

Food Prices Drop Due To Naira Appreciation

The recent appreciation of the Naira against global currencies has resulted in a gradual decrease in the prices of certain food items in the local market. Analysts from Financial Derivatives Company Limited reported that the prices of various commodities have begun to adjust in response to the sustained appreciation of the Naira……READ ALSO Rising Food Prices Challenge Access To Healthy Diets In Nigeria

According to Bismarck Rewane, the Managing Director of Financial Derivatives Company Limited, the Naira has rebounded to N1,260/$ at the official market and N1,125/$ at the parallel market. As a result, the prices of rice, sugar, flour, and noodles have experienced notable declines.

Rewane highlighted specific decreases in prices, such as a 5.26% reduction in the price of a 50kg bag of rice to N90,000, a 5.88% decrease in the price of sugar to N80,000 per bag, a 7.81% decline in the price of flour to N59,000 per bag, and a significant 15.22% decrease in the price of noodles per carton to N7,800.

He further predicted that prices would continue to reflect the Naira’s appreciation as businesses replenish their inventories. This trend is expected to contribute to a slowdown in inflationary pressure in the coming months.

The recent foreign exchange market sanitization policy by the Central Bank of Nigeria (CBN) has played a significant role in the Naira’s steady recovery. The rebound in exchange rates has been supported by increased forex inflows and the CBN’s sale of dollars to Bureaux De Change (BDCs). In addition, foreign portfolio investments have surged to $2.3 billion in the first two months of 2024, further bolstering the Naira’s recovery.

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