SUN, AUGUST 13 2023-theGBJournal |July 2023 commenced with the Naira valued at N741.50 against the US Dollar, reflecting the longstanding economic challenges Nigeria has faced.
However, as the month unfolded, the Naira’s value encountered a significant setback, recording a decline of 2.08% to reach N756.94/$1 on the Investors and Exporters (I&E) window by month-end.
The downward spiral was exacerbated by an unprecedented intra-day peak of N869/$1, marking the worst recorded value in history
A multiplicity of factors has fuelled the relentless demand for US Dollars. The pursuit of necessities such as education, healthcare, and imports has propelled many Nigerians to seek foreign currency.
In parallel, the aspirations of the Nigerian youth for better prospects abroad have heightened the clamour for foreign exchange.
According to analysts at Comercio Partners Limited, ”this unabated demand, along with the potential for speculative activity against the Naira, continues to exert pressure, exacerbating its depreciation.”
”Regrettably, the Central Bank of Nigeria’s (CBN) I&E window falls short in meeting the insatiable demand for the US Dollar due to approximately 44 restricted items that are barred from accessing Forex through official channels” Comercio analysts said in a note to theGBJournal.
Moreover, the scarcity of dollars due to bank-imposed rationing has intensified the clamour for the black-market dollar.
Consequently, a considerable number of individuals have been compelled to resort to the black market to procure the coveted currency.
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