Experts attributed the decline in the naira’s value to the persistent shortage of foreign exchange, coupled with the high demand for foreign currency by businesses and individuals.
Nigeria’s foreign exchange reserves have declined in recent times, despite the increase in crude oil prices, which is the country’s major source of foreign exchange earnings.
The Central Bank of Nigeria (CBN) has been working to maintain a stable exchange rate, but the persistent pressure on the naira has led to the devaluation of the currency over time.
The CBN has also implemented several policies to manage the demand for foreign exchange, including the restriction of access to foreign exchange for certain imports.
However, these measures have not been enough to ease the pressure on the naira, and experts have called for more sustainable policies to address the issue.
Analysts predict that the naira may continue to depreciate against major currencies if the current trend persists, which could have a negative impact on the economy.
Despite the challenges faced by the naira, the CBN remains committed to maintaining a stable exchange rate and supporting the growth of the economy. The bank has implemented several initiatives aimed at promoting local production and reducing the country’s reliance on imports.