Nigeria's economy is facing one of its worst economic crises in years, with annual inflation approaching 30 percent and the currency deteriorating in the event of a free fall. This sparked nationwide anger and protests.
The Nigerian currency hit a new all-time low against the US dollar in both the official and parallel foreign exchange markets, falling to nearly 1,600 against the dollar on the official market from around 900 at the start of the year.
The federal government plans to raise at least $10 billion to boost foreign exchange liquidity and stabilize. To reform the economy and attract international investment, the Nigerian president has consolidated multiple exchange rates and enabled market forces to determine the exchange rate, leading to a currency depreciation.
Source (CNBC Arabia Website, Edited)
