Di value of di Nigeria naira don drop di kain drop wey no ever happun before for di history of di kontri finance.
For black market on Tuesday, di exchange rate drop to around N1,415 while di official rate na N892 and N910.
Dis kain free fall don make di life of Nigerians miserable plus cause serious confusion for business pipo, wey no sure weda dem go fit survive dis can expensive price for dollars.
Even though di naira don dey experience plenty kasala since di last goment wey hand over power for May 2023, e enta anoda gbege di following month afta handover.
For June 2023, di Central Bank of Nigeria (CBN) begin implement di policy of unification of di naira, wey end di top bank control over di foreign exchange market.
Since den na only market forces or market activities fit to determine di value of dollar to naira.
But dis policy get k-leg becos some kain tins bin no dey to help di economy to support di policy.
Finance expert Victor Aluyi, wey be ogbonge Nigeria investment analyst, say dis kain fall wey di naira dey fall so, no show di true value of di naira.
Im say di main wahala wey dey cause di high price of dollar na sake of say di goment unification of di naira policy dey face big challenge becos di economy no get di dollar wey e need to implement am.
Nigeria dey run on economy wey get veri veri high demand for dollar, as e dey import almost evritin enta di kontri, but e no dey do enof export to make di amount of dollar wey im pipo and businesses need.
Problem wit di unification of naira
Aluyi say dis unification of naira policy wey don dey run for di last six months carry plenty palava follow body.
Di first palava be say pipo no just trust dis policy at all and dat na why more and more pipo dey buy di dollar even wit di expensive price becos dem believe say dem go make money as speculators.
Di Nigeria investment expert add say, dis CBN policy no just clear at all, as di bank no dey give any information so pipo no too understand wetin dey occur and dis na also why speculators dey take advantage of di situation.
E also get business men wey dey speculate not becos dem wan change di money wen di naira fall, but becos dem no sure wetin go happun wen dem go need to buy dollar like in di next two months.
Di second be say as goment begin implement dis unification of naira, di policy don open fowl bum bum and so pipo don see say di level of scarcity of dollar high no be small.
Di signal wey dis dem give according to Aluyi, be say “tins tight for di CBN”.
“You no fit unify di naira just by tok… in fact di koko be say once you wan unify di naira, you must get dollar to support dat unification policy. If you no get dollar to back am up, den notin go happun.
“Di real challenge be say we no get dollar to back am up, di demand plenty but no dollar to back am up, dat na why di value of di naira continue to fall against di dollar.”
As if dat one no dey enof, on 23 January, CBN kuku come adjust di price of dollar lower, and dis make di naira weaker. Dis cause di number three palava.
Dollar price fall yakata afta CBN Govnor Olayemi Cardoso announce on Wednesday say di top bank dey try increase liquidity or di amount of cash flow for di foreign exchange market.
One forex analyst, Kyle Chapman, tell tori pipo Reuters say dis free fall of di naira don become constant mata wey dey repeat imsef indefinitely.
Chapman add say: “Di more e dey fall, di less investors go wan enta Nigeria.”
Wetin to do to stop naira free fall?
Aluyi say im believe say sometin go happun soon to change di direction wey naira rate dey go right now.
Aside from dis, im say goment must to increase di dollar supply for di economy.
Dis goment fit do by increasing how much e dey make from crude oil, by increasing production.
Chapman agree wit Aluyi as im say di official naira rate dey nearly go jam di black market becos CBN neva fit clear all di outstanding amount wey e dey owe for forward deals sake of di di shortage of dollar.
Den e say goment need to increase interest rates so dat dem go fit attract foreign investors.
Aluyi say wen interest rates high, e go increase foreign money and dis go fit to increase di foreign money wey dey goment hand. Im add say although dis no be permanent arrangement, at least e go help goment manage di fall.
How naira don officially trade against dollar since 2013 till date
2013 – ₦157.27
2014 – ₦169.68
2015 – ₦196.99
2016 – ₦305.22
2017 – ₦306.31
2018 – ₦306.92
2019 – ₦306.95
2020 – ₦381
2021 – ₦410.47
2022 – ₦449.05
2023 – ₦897.6
While di current official rate of di US dollar to Nigeria naira na ₦892 as at di time of filing dis report, and black market na about ₦1,415.
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