Tag ongoing recession may worsen as naira hits 390dollar

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Tag: Ongoing Recession May Worsen as Naira Hits 390 to the Dollar

The Nigerian economy is facing a severe crisis as the value of the naira continues to plummet against the US dollar. The latest exchange rate has seen the naira hit a record low of 390 to the dollar, sparking concerns that the ongoing recession may worsen.

The naira's depreciation has been attributed to a combination of factors, including a decline in oil prices, a rise in inflation, and a shortage of foreign exchange. The country's foreign exchange reserves have also been depleted, making it difficult for the Central Bank of Nigeria (CBN) to intervene in the market.

The impact of the naira's depreciation on the economy is far-reaching. It has led to a surge in the cost of imports, making it difficult for businesses to operate and for consumers to afford essential goods. The depreciation has also led to a rise in inflation, which is expected to worsen the purchasing power of Nigerians.

The ongoing recession is expected to worsen as a result of the naira's depreciation. The country's GDP is expected to contract further, leading to a decline in economic activity and a rise in unemployment.

The government has been criticized for its handling of the economy, with many calling for a more effective response to the crisis. The CBN has implemented several measures to stabilize the naira, including the introduction of a new foreign exchange policy and the injection of foreign exchange into the market. However, these measures have been criticized for being insufficient and for failing to address the root causes of the crisis.

The naira's depreciation has also led to a rise in corruption, as some individuals and businesses are taking advantage of the situation to engage in illegal activities. The government has promised to take action to combat corruption, but many are skeptical about its ability to do so.

In conclusion, the ongoing recession in Nigeria is expected to worsen as a result of the naira's depreciation. The government must take immediate action to address the crisis and restore confidence in the economy.