Naira Plunges to ₦1,510/$ in Parallel Market, Records Marginal Gain in Official Window Amid Forex Crisis
By springnewsng Media Limited March 4,2025
The Nigerian naira has hit a new all-time low of ₦1,510 against the US dollar in the parallel market, even as it recorded a slight appreciation in the official market, trading at ₦1,450/$. Naija247news gathered that the widening gap between the two exchange rates has heightened concerns over the stability of the nation’s currency and the effectiveness of the Central Bank of Nigeria’s (CBN) forex policies.
According to Naija247news, the naira’s sharp decline in the parallel market is attributed to surging demand for dollars, limited supply, and speculative activities by currency traders. “The demand for dollars is overwhelming, and the supply is just not there. This is why the naira keeps falling,” said Alhaji Musa Bello, a bureau de change operator in Lagos.
In contrast, the official market saw a marginal gain, with the naira appreciating to ₦1,450/$ from ₦1,470/$ earlier in the week. Naija247news understands that this slight improvement is linked to recent CBN interventions, including dollar injections into the market and tighter monetary policies aimed at curbing inflation.
The disparity between the parallel and official rates has sparked debates among economists and stakeholders. According to Naija247news, some experts argue that the gap undermines investor confidence and creates opportunities for arbitrage, while others believe it reflects deeper structural issues in the economy. “The widening gap is a symptom of underlying problems, such as low foreign exchange reserves and weak export earnings. Until these issues are addressed, the naira will remain under pressure,” said Dr. Adeola Williams, an economist at the University of Lagos.
Naija247news reports that the CBN has introduced several measures to stabilize the naira, including restricting forex access for certain imports and promoting local alternatives. However, these measures have yet to yield significant results, with many businesses and individuals still relying on the parallel market to meet their dollar needs.
The naira’s depreciation has had a ripple effect on the economy, leading to higher prices for imported goods and services. According to Naija247news, the situation has also increased the cost of doing business, with many companies passing the additional costs on to consumers.
As the naira continues to struggle, stakeholders are calling for a more comprehensive approach to address the challenges facing the currency. According to Naija247news, this includes diversifying the economy, boosting non-oil exports, and addressing the root causes of forex scarcity. For now, the naira’s mixed performance highlights the complexities of Nigeria’s forex crisis, leaving many to wonder if the currency can regain its footing in the near future.
