The Nigerian currency, the naira, has suffered a significant depreciation in the third quarter of 2023, according to official and unofficial data.
The third quarter of 2023 has closed with startling figures for the Nigerian economy as the Naira faced a significant depreciation in value.
According to data gathered by Nairametrics, the official exchange rate at the end of Q3 was N755.27/$1, a noticeable drop from N769.25/$1 at the end of Q2.
However, it’s the parallel or “black” market that paints a more distressing picture, with the rate plummeting from N770/$1 to N1000/$1 over the same period—a staggering 23% loss.
Simultaneously, the external reserves have slipped from $34.1 billion at the end of Q2 to $33.2 billion, raising further questions about Nigeria’s economic stability.
READ ALSO: Naira Marley Taken Into Custody For Interrogation – Police
-Advertisement-
The widening gap between the official and unofficial rates reflects the persistent scarcity of foreign exchange in the country, as well as the divergent policies of the CBN and the market forces.
The central bank has blamed the forex backlog estimated at between $6 billion to $10 billion as the major reason for the currency depreciation.
At the recent Senate confirmation of the central bank governor, Yemi Cardoso stated that he intends to establish the exact unsettled obligations and find ways to “take care of it” confirming that progress will not be made without clearing the backlog.
We do everything possible to supply quality news and information to all our valuable readers day in, day out and we are committed to keep doing this.
Your kind donation will help our continuous research efforts.
-Advertisement-
-Want to get the news as it breaks?-
