The Nigerian Naira has experienced a significant decline, reaching an unprecedented low of N2040 per Great Britain Pound (GBP) in the parallel market exchange rate.

This represents a notable decrease of 5.39% or N110 compared to the previous day’s rate of N1,930.

The depreciation reflects persistent demand pressures eroding the currency’s value, Nairametrics reports.

According to the report, the parallel market exchange rates continue to witness devaluation of the Naira, exacerbated by a substantial surge in inflation.

The National Bureau of Statistics (NBS) reported a January 2024 inflation rate of 29.90%, marking a 0.98% increase compared to December 2023 figures.

Despite efforts by the Central Bank of Nigeria (CBN) to boost forex supply, including policies such as halting international oil companies from remitting 100% of their forex proceeds abroad, the Naira’s value continues to decline.

In the parallel forex market, where forex is unofficially traded, the Naira depreciated against the dollar, reaching N1,655/$1, reflecting a 3.93% decrease from the previous day’s rate of N1,590.

Additionally, the Naira weakened against the Euro by 4.09%, closing at N1720/EUR1 compared to N1650/EUR1 reported the previous day.