News, People

It’s N378 /$1, Naira is now being lynched

At both interbank and parallel markets, the Naira is now being lynched, clubbed and stoned, slapped and kicked as it crashes to record lows against major international currencies – with no help or succor from the government.
Industries are panting, offloading employees or reducing salaries on account of the very troubled economy acknowledged to be in deep recession, in spite of official 11 prevarications.
From dollar, euro to pounds, the Naira is being battered from all angles. And all through the week, it has been a combination of ceaseless pummelling.
Today (Friday, July 22 ), the official cross rate of the dollar in  international markets stand at N330!
At the black market,  it’s N378. The euro is N410, while pounds is N490.
This rise of international currencies against the Naira since last year has had far reaching consequences on the economy, throwing us into a recession and spiking inflation to 16.5 percent.
And there’s no succour in the horizon as revenue from oil dwindles on account of low purchases and reduced supplies as militants cripple exportation with states of bombing of installations and more threats to lives.
With little inflows to support our dollar needs,  and lack of confidence from foreign investors who want the Naira to lose more value and allowed to float unhindered, we are unsure of where the rate will settle.
And since we are largely a nation hugely dependent on importation of all manner of goods, and raw materials, there is no escape from higher prices.
Just about a month ago before the introduction of the new foreign exchange regime, the Naira was N197 to a dollar.  But it jumped to N254 and later settled at N281 to N285 until this recent onslaught where it crossed to N292 and N295.
Many experts have predicted that the Naira will eventually hover around N250 after rising to well above N305 at the official market.
As manufacturers complain, so do traders whine  with the ultimate loser being the consumer whose income has reduced in value paying more for essential goods.

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