The Naira, has undergone a significant decline in value, plummeting to ₦1,340 per dollar in the parallel market, marking a notable decrease from ₦1,300 per dollar just last Friday.

This downward trend has sparked concerns among investors and the public, as economic pressures continue to weigh heavily on the nation.

According to reports, the depreciation trend persisted in the Nigerian Foreign Exchange Market (NAFEM), where the Naira weakened further to ₦1,419.11 per dollar from ₦1,339.23.

Data released by FMDQ revealed a sharp depreciation of ₦79.88 in the indicative exchange rate for NAFEM, exacerbating anxieties surrounding the economic outlook.

The widening disparity between the official and parallel market rates, now standing at ₦79.11 per dollar compared to ₦39.23 last week, shows the volatility plaguing the foreign exchange market.

Economic analysts attribute this growing gap to increased demand for dollars that is outpacing the available supply through official channels.

With the imbalance prompting individuals and businesses to seek alternatives in the parallel market, where rates are typically higher but more accessible, concerns mount over the implications for economic stability and inflationary pressures.

As the Central Bank of Nigeria remains silent on the unfolding market dynamics, financial experts advocate for urgent interventions to address the situation. Suggestions include measures aimed at enhancing foreign exchange liquidity and tackling structural economic challenges to mitigate the Naira’s continued depreciation.

The ongoing erosion of the Naira’s value has far-reaching implications, impacting import costs, inflation rates, and the overall cost of living for businesses and households nationwide.

Against this backdrop, the necessity for robust economic policies and effective management of the foreign exchange market to safeguard Nigeria’s economic stability has never been more apparent.