NAIRA DEPRECIATES TO N1,745/$1 AS TRADERS BLAME SPECULATORS

The Nigerian Naira has suffered a significant decline, depreciating to N1,745 per dollar. This sharp reversal comes after the currency had reached sub-N1,600 levels just last week. The exchange rate has been fluctuating, with some dealers quoting N1,715/$1 and others at N1,745.

Traders Point Fingers at Speculators

Traders in the foreign exchange market have blamed speculators for the decline in the value of the Naira. According to them, speculators have been taking advantage of the current economic uncertainty to manipulate the exchange rate.

“The speculators are having a field day, taking advantage of the uncertainty in the market to make a profit,” said a trader who preferred to remain anonymous. “The government needs to take decisive action to address the underlying issues driving the depreciation of the Naira.”

Government Policies Under Scrutiny

Some experts argue that the government’s policies, such as the Economic and Financial Monitoring Committee (EFEMS), are not effectively addressing the underlying issues driving the currency’s depreciation.

“The government’s policies are not tackling the root causes of the Naira’s depreciation,” said Dr. Biodun Adedipe, a financial analyst. “The government needs to focus on increasing local production and reducing dependence on foreign imports to stabilize the exchange rate.”

Impact on the Economy

The depreciation of the Naira can have far-reaching consequences for the economy and everyday Nigerians. A weaker Naira can lead to higher prices for imported goods and services, affecting inflation and the cost of living.

“The depreciation of the Naira is a major concern for businesses and individuals who rely on imported goods and services,” said Mr. Muda Yusuf, director-general of the Lagos Chamber of Commerce and Industry. “The government needs to take urgent action to address the underlying issues driving the depreciation of the Naira.”

Conclusion

The depreciation of the Naira to N1,745/$1 is a significant concern for the Nigerian economy. While traders blame speculators for the decline, experts argue that the government’s policies are not effectively addressing the underlying issues driving the currency’s depreciation. As the government grapples with the challenges facing the economy, one thing is clear: urgent action is needed to stabilize the exchange rate and protect the livelihoods of everyday Nigerians.