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Business

Nigerian Naira drops to all-time low

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Opening sequence

Business

Nigerian Naira drops to all-time low

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COMING UP:Nigerian Naira drops to all-time low

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Transcript

00:00:00
>> Now the value of a naira on the interbank market has passed the 300-to-the-dollar mark. And that's an all-time low. And that's the result of the dollar scarcity. My name is Alexis Akwagyiram, I'm Senior Reuters Nigeria Correspondent, and I'm reporting from Lagos. Now, the impact on every day Nigerians is that, it's pushed up inflation.
00:00:20
In June, inflation hit 16.5%, which is a ten year high. On top of that the British community, entrepreneurs, people who import, they can't get hold of Dollars either. And they still can't, even though the packet's been removed. So for them, they are still going through the black market to source their dollars.
00:00:37
And they're paying around 375 naira to the dollar, which makes it incredibly hard for them to do anything. Because this is a country where almost everything is imported. We're talking about rice, wheat, most foodstuffs, even toothpaste. So the question is what happens next. Well first of all, there's the issue of recession.
00:00:56
NOISE].
mean this newspaper sums it up. You've got concerns about Naira at the top and below that, an admission by the Finance Minister yesterday to lawmakers that the country is technically, essentially already in recession. There was the first quarter of the year in which there was negative growth.
00:01:15
And the second quarter looks likely to be the same. Secondly, inflation looks likely to continue rising and rising, unless something is done. So the Central Bank Is meeting next week, and most analysts agree that they're likely to raise the benchmark interest rate in a bid to keep down the rates of inflation.
00:01:36
But then in terms of the dollar scarcity, there doesn't seem to be any indication that, that is going to ease anytime soon.