Bamidele Imisioluwa

These are not the best times for the Nigerian government, citizens and residents as they currently grapple with the adverse economic effects of the crashing currency. In retrospect, in the 1980s, $1 was equivalent to N0.70, and everything was going on well but how it shot up to $1 exchanging for over a N1000 is what nobody knows. This is the greatest fall in 40 years.

The Naira continues to race faster than a horse leaving everyone in uncertainty. In the previous week, the naira closed the week at N1, 170/$ on the parallel market. On the official window, the local currency managed to pare some of its previous loss, ending the week at N808 to the US dollar. Two days earlier, it sold for N999/$ on the official market according to a report by Reuters.

It is however surprising that since the inauguration of this new government, a pattern began to appear and since then the value of the local currency has gone in one direction. On June 14, the Naira suffered a staggering loss of 25% of its value relative to the previous day rate, falling to an all-time low of N620/$ at the official window according to data from Refinitiv before Falling further to N664 two days later.

Although, the Central Bank of Nigeria has over time expended billions of dollars to support the naira and cushion its impact on the economy by intervening consistently in the Forex market. It has also made a host of other efforts, including but not limited to regulatory directives to banks, bureau de change operators, and her collaboration with the anti-graft agencies like the Economic and Financial Crimes Commission to stall round tripping and arbitraging among other infractions that are existent in the Forex market but we all know this has done little to nothing but scratching the issue on the surface.

 With the current reality on ground with the Naira almost rising to 1300/$1, will it be long before it hits 1500/$1? And if it does, what is the hope of the common man?