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Currency Crisis: Nigerian Naira Hits Record Low Despite Stabilization Efforts
In the lead-up to Nigeria's 2023 elections, President Ahmed Bola Tinubu, then a candidate, promised to halt the rapid depreciation of the country's currency. However, nearly one year into his presidency, Tinubu's pledge appears unfulfilled, as the naira continues to lose value against major convertible currencies.
On January 26th, the naira reached a historic low of ₦1,421 per USD on the thinly traded official market before recovering to ₦891. The Nigerian currency has been on a downward trajectory since 2014, despite concerted efforts by both the current and previous administrations to stabilize it.
The persistent depreciation has given rise to a parallel black market where the naira has been trading for over ₦1,000 per USD since late 2023, contrasting sharply with the official exchange rate, which has been pegged around ₦800.
The volatility of the naira poses significant challenges for the country's economy, impacting businesses, inflation rates, and the overall purchasing power of citizens. President Tinubu's administration now faces the daunting task of implementing effective measures to address the currency's depreciation and restore confidence in the economic stability of Nigeria.
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