By Akinsuroju Olubunmi
Naira gains in Forex markets, but inflation persists
Naira Gains
The Nigerian naira has seen a notable appreciation against the United States dollar in recent weeks, both in official and unofficial foreign exchange markets. However, despite this positive development, the effects on the prices of goods and services have yet to be felt by the general populace.
According to data from the FMDQ website, the naira closed at N1,136.04/$1 on Monday, marking a 0.6% appreciation from the previous market session. This appreciation was reflected in both authorized and unauthorized forex markets, with the naira experiencing an intraday high of N1,000 and a low of N1,227.00 against the dollar.
Persistent Inflationary Pressures
Despite the gains made by the naira, inflationary pressures continue to persist across Nigeria. Official figures released by the National Bureau of Statistics (NBS) indicate an annual inflation rate of 33.20% in March, up from 31.70% in February. The food inflation rate in March also surged to 40.01% yearly, reflecting a significant increase compared to the same period last year.
Expert Analysis
Financial experts attribute the recent naira gains to ongoing government reforms aimed at stabilizing the currency. However, inflation remains a challenge, with commodity prices continuing to rise. While the appreciation of the naira may eventually lead to price moderation, the impact is expected to take time to materialize.
Analysts highlight the importance of addressing underlying issues such as insecurity and high production costs to effectively tackle inflation. Despite the positive developments in the forex markets, the persistence of inflationary pressures underscores the need for comprehensive measures to ensure economic stability and mitigate the impact on consumers.
Naira Gains, Inflation Persist