Since the COVID-19 pandemic, the Nigerian economy has struggled and the naira has come under the weight of foreign currencies. The growth rate declined by -1.8% in 2020, grew by 3.4% in 2021 and is projected to maintain the pace in 2023.The economy endures a high inflation rate of 15.9% (March 2022) and a high unemployment rate of 33.3% (Q4 2020). The value of the naira has dwindled from N360/dollar in 2019 to N590/dollar in 2022; the national reserve is shallow ($39 billion as of April 2022) despite the surge in energy prices since the Russia-Ukraine war and the Israel -Palestinian war. What is the future of the naira economy after the verdicts by the supreme court of the niara currency?
The annual inflation rate continued to accelerate to reach an over 18-year high of 26.7% in September 2023, up from August's 25.8%, mainly attributed to second-round effects of the removal of a old petrol subsidy and the devaluation of the naira against the greenback on both the official and parallel markets. Prices of food, which is the most relevant in the CPI basket, jumped to 30.6% in September, the highest since August 2005, from 29.3% in the prior month, also linked to security issues in food-producing regions. Additional upward pressure came from other CPI items, including transportation (27.2% vs 27.1%); housing & utilities (22.5% vs 21.8%); and miscellaneous goods & services (21.9% vs 21.8%).
This price naira gains strength 馃挭 today against both the USDT-NGN amd the BTC-NGN pairs today on Binance with dollar dropping 4.9% on the 4hrs chart breaking notable EMA to the down side with a big red vectic candle stick bouncing of the 100 ema while consolidating within 50 and the 100 EMA. continuous consolidation might lead to price decline for awhile before moving back to recover the vector.
