FX Crisis Persists in Nigeria: Dollar exchange rate rises to N720

By: Damian Okonkwo

The FX crisis in Nigeria worsened last week with the Dollar exchange rate rising to a new record high at N720 per dollar on the black market last week Thursday marking its worst exchange rate in the history of the country.

The high political tussle and insecurity in the country have dispersed many investors from the country in recent times. This has greatly reduced the demand for its local currency and created a higher demand for the US dollar. Thus increasing the rate of the US dollar exchange against the Naira, pushing the exchange rate to its highest level in over sixty years.

The high increase in the exchange rate has increased the hardship within the country as the prices of all goods and services available in the country have doubled compared to their prices last two years. The Federal government has left the minimum wage unchanged notwithstanding the high increase in the exchange rate.

Many companies operating within the country have been forced to shut down due to the high cost of production. This is because most companies operating in Nigeria are dependent on imported raw materials for their production.

Speaking on the current situation, the CBN Director of Corporate Communications - Mr. Osita Nwanisobi assured Nigerians that the central bank remains committed to resolving the present FX crisis rampaging the nation and has been working hard to increase the dollar supply and reduce demand.

Nonetheless, the exchange rate at the parallel market eased a bit on Friday with the naira falling to N715 against N720 recorded on Thursday. However, the exchange rate remains above N700 on the black market till the present moment.

Speaking on the current situation, the famous Labour Party Presidential Candidate - Mr. Peter Obi has called on the Nigerian government and all citizens to avoid using foreign currencies, especially the US dollar for local transactions to reduce demand. He stressed the need for the government to restore confidence in the Naira among the citizens to reduce the selling pressure.