Naira Hits Record Low of N1,600 Against Dollar

Oluwasegun SanusiFebruary 15, 20241 Mins read706

This morning, the Nigerian naira plummeted to an unprecedented low of N1,600 against the US dollar, marking a distressing milestone for the country’s economy under President Bola Tinubu’s administration.
This alarming dip was observed by the financial tracking platform Aboki Forex, despite concerted efforts by the Central Bank of Nigeria (CBN) to stem the currency’s downward spiral.
The relentless depreciation of the naira has been a persistent challenge, with its value steadily declining even before Tinubu assumed office in May of the previous year.
However, the situation has been exacerbated since the implementation of a floating exchange rate regime, amplifying concerns over the nation’s economic stability.
The weakening of the naira against major foreign currencies like the dollar has sparked widespread unease among citizens and stakeholders alike, as it not only erodes purchasing power but also undermines investor confidence in the Nigerian market.

Analysts have attributed this sharp decline to a myriad of factors, including dwindling foreign reserves, rising inflation, and a volatile global economic landscape exacerbated by geopolitical tensions.

In response to the crisis, the CBN deployed various monetary policies in a bid to stabilise the currency and mitigate the adverse effects of the freefall.

However, the effectiveness of these interventions remains uncertain amid persistent market pressures and uncertainties surrounding Nigeria’s fiscal and economic policies.