The Nigerian naira experienced a significant decline, reaching a new low on Thursday, closing at N956.33 per dollar in the official market and N1165 per dollar in the parallel market.
This reflects a 12.11% depreciation in the local currency compared to the N840.53 it closed at on the previous day, marking a new all-time low per the Nairametrics tracker.
The intraday high and low were recorded at N1136/$1 and N615/$1, respectively, representing a considerable spread of N521/$1.
Data from the official Nigerian Foreign Exchange Market (NAFEM) indicates that forex turnover at the close of trading was $105.50 million, showing a 46.77% decrease compared to the previous day.
Simultaneously, the naira weakened in the parallel forex market, with the exchange rate depreciating by 1.29%, quoted at N1165/$1, while peer-to-peer traders quoted around N1148.44/$1.
Amid the escalating decline of the naira in both official and unofficial markets, financial experts have urged the Central Bank of Nigeria (CBN) to de-dollarise the economy by declaring any local transactions in US dollars illegal.
Dr. Biodun Adedipe, the founder and chief consultant of B. Adedipe Associates Limited (BAA Consult), suggested strategies for the naira to regain strength. Adedipe emphasised that the CBN should stop government agencies from charging local operators and entities in US dollars.
He also proposed that the sale of crude oil to local refineries should be conducted in Naira rather than US dollars.
Adedipe further recommended transparent dealings with participating banks at the Investors and Exporters (I&E) Window, urging the de-dollarisation of the economy by prohibiting local transactions in US dollars.
He highlighted the importance of addressing structural issues and the need for a realistic approach to exchange rates in a structurally defective and weak economy.
In response to the economic challenges, experts are calling for a holistic approach, including engaging with bank CEOs, implementing market reforms, and facing the reality of the country’s economic conditions.
Source: Nairametrics