Tag naira hits all time low at parallel market
It seems like you're referring to the current economic situation in Nigeria. Yes, the Nigerian Naira has indeed hit an all-time low at the parallel market, also known as the black market.
As of today, the Naira has depreciated to a record low of around 740-750 per US dollar, which is a significant drop from its previous rate of around 600-620 per dollar. This has led to a surge in the demand for foreign currencies, particularly the US dollar, as people try to protect their savings and investments from the rapidly declining value of the Naira.
The reasons for this decline are multifaceted, but some of the main factors include:
- Lack of foreign exchange: The country's foreign exchange reserves have been dwindling due to a combination of factors, including a decline in oil prices, a drop in oil production, and a surge in imports.
- Inflation: Nigeria is currently experiencing high inflation rates, which has eroded the purchasing power of the Naira and led to a decrease in its value.
- Economic recession: The country has been in a recession since 2016, which has led to a decline in economic activity and a decrease in the value of the Naira.
- Dollar scarcity: The scarcity of US dollars in the market has also contributed to the decline in the value of the Naira, as people are willing to pay a premium to get their hands on the scarce currency.
It's worth noting that the official exchange rate, which is managed by the Central Bank of Nigeria (CBN), is still around 360-370 per dollar. However, the parallel market rate is often seen as a more accurate reflection of the true value of the Naira, as it is driven by market forces rather than government intervention.
I hope this helps clarify the situation. Do you have any other questions about the Naira's decline or the Nigerian economy in general?