Index to Nigerian Newspapers

Nigeria's official exchange rate is experiencing a significant divergence from parallel market rates, reaching N100/$1. This is the widest gap since the currency's unification, driven by an insatiable demand for the US dollar that surpasses the available supply. The Central Bank of Nigeria (CBN) initially hinted at allowing free trade until the currency reached a market-relevant level, but concerns have arisen that the high demand for foreign exchange might lead to further depreciation of the local currency. Factors contributing to this predicament include a significant influx of foreign currency from non-oil sources into the black market, exacerbated by the dollar shortage issue. Nigeria's failure to meet the OPEC quota plays a vital role in determining the value of the Naira, as oil remains a major contributor to foreign currency earnings. The country's crude oil production has fallen short of OPEC's target of 1.74 million barrels per day, and the principle of willing buyer-seller foreign exchange trading could have negative short-term effects on the Nigerian economy. The inability of the Central Bank of Nigeria (CBN) to meet official market demand has driven many towards the parallel market, causing prices to surge due to unprecedented demand for the Naira's currency.