BREAKING: Naira Falls Again To N1,410 /$1 at the black market

Thursday’s robust demand on the black market, or parallel market, caused the naira to drop to a record low of N1,410 per dollar.

This is N45.00, or 3.29%, less than the N1,365 reported at Wednesday’s closing of business.

The degree of the current economic difficulties is reflected in the observed depreciation, which is unprecedented and represents the lowest point in the Naira’s historical performance.

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Experts in the market credit the latest drop to a sustained increase in demand for US dollars that has been visible since January 1. The following are the main causes of this increased demand:

A substantial portion of the demand is attributed to businesses actively seeking to restock goods or acquire raw materials, necessitating a higher demand for foreign exchange.

Individuals pursuing overseas studies have also played a significant role in driving the demand for dollars. This trend is likely connected to the need for tuition payments and related educational expenses.

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The departure of diaspora Nigerians, particularly noticeable after the holiday season, has contributed to the increased demand for foreign currency. The departure of individuals from the US and other foreign countries has had a notable impact on the parallel market.

With schools abroad reopening, international students are actively restocking their foreign currency reserves to meet impending school fees and other financial obligations. Additionally, students are securing funds for holiday allowances.

The unprecedented depreciation marks the lowest point in the naira’s history against the US dollar, raising concerns about potential economic ramifications.