Naira Slides Further, Now 161 To $1

The value of the nation’s currency, the naira, has continued to experience a free fall against other foreign currencies, especially the United States of America dollars.

Latest indication is that N161 now exchanges for one dollar. The slide is coming in the wake of the recent pronouncement by the governor of Nigeria’s Central Bank, Prof. Charles Chukwuma Soludo, that the value of the naira cannot be shored up against other currencies. According to him, the CBN cannot continue to protect the naira forever.

Analysts have said that as long as the price of oil in the international market continues to fall, the value of the naira will equally fall since Nigeria depends largely on proceeds from exportation of crude oil. As the value of the naira continues to fall, it poses grave implications for prices of manufactured and imported commodities. The prices will continue to rise sharply as the high cost of producing goods locally will be passed to the consumers. It will also lead to serious inflation as more money will be in circulation. With a devalued naira, the purchasing power of the consumers will be reduced immensely.