Naira has reached an historical low N1348.63/$ on the Nigerian Foreign Exchange Market (NFEM), compared to N891 on Friday, a whopping daily depreciation of 33%. This is the worst level for the Naira since the exchange reforms of June 2023. On the streets, it exchanged for N1450 /$. It comes amidst the Central Bank of Nigeria (CBN) efforts to clear backlogs of foreign exchange, which it announced it made another US $500 million last week. The Governor, Yemi Cardoso said last week that the Naira is undervalued, though pressures remain. The immediate strategy of the Bank includes the expectation of an increase in oil production, targeted at 1.7 million this year, improving the receipts from the National Oil Company, Nigerian National Petroleum Corporation (NNPC) ltd, and collaboration with fiscal authorities to reduce liquidity in the economy through moderation of deficits and debts. In the meantime, a near 100% depreciation in seven months is the worst in the world, accompanied by unprecedented pressures on household budgets, business plans, and productivities.
