The Nigerian Naira has hit a new record low, exchanging at ₦1,100 to the US dollar, sending shockwaves through the country’s financial markets and raising concerns about the economic stability of Africa’s most populous nation.
This alarming depreciation of the Naira is seen as a reflection of the economic challenges facing Nigeria. The steep fall in the currency’s value has left citizens and businesses grappling with the consequences, such as rising prices for imported goods and increased inflation. It has also raised questions about the central bank’s ability to manage the country’s monetary policy effectively.
Yemi Cardoso, who assumed office as the Governor of the Central Bank of Nigeria (CBN) earlier this year, is now facing severe criticism for his inability to halt the Naira’s downward spiral.
Analysts have now voiced their concerns over the failure of Cardoso to implement policies that will firm up the value of the Naira. It baffles investors that the rates on Nigeria’s treasury bills and fixed deposits are far below the inflation rate.