IT News Nigeria:
Nigeria currency, the Naira slides further to one thousand nine hundred and eight naira to a British pound (1,908) today, casting doubts on the current administration to ability to rescue the economy.
The latest free fall represents the lowest in the history of Africa’s most populous country. Reports said The naira’s official exchange rate has been drifting towards the parallel market level as the central bank is yet to clear outstanding amounts owed in forward deals, worsening a shortage of foreign-currency in the West African nation.
last week, the naira fell as low as 1,421 to the dollar, during trading on Friday, FMDQ data showed, compared with around 1,400 naira quoted on the parallel market. The currency later closed at 891.90 naira on the official market.
According to Reuters: “The downwards spiral is becoming self-perpetuating at this point. The further it falls, the less investors want to enter Nigeria, and the deeper the risk premium embedded into the naira rate.
Tosin Olaseinde, a financial advisor, told Business Day that “People might have to start transitioning their wards abroad back home. At N1,900/£ how will they cope,”.
Nigerians faced with incredibly high food prices are having to cut meals and seek cheaper alternatives.
