A more than disturbing news broke early last week when the media reported that the naira was exchanging at the parallel market at N503 to one US dollar! It looks like the naira is precipitously going downhill, like the Venezuelan bolivar soberano and Zimbabwean dollar.
As of 2018, the inflation rate in Venezuela was 1,698,488 per cent and its bolivar soberano exchanged at 3778277.49225 to the American dollar! In Zimbabwe, inflation rate was 557.21 per cent, while the Zimbabwean dollar was equivalent to 0.0027631943 American dollar.
The obvious disparity in the value of the US and the Zimbabwean dollars confirms that indeed there is nothing in a name. Were it not so, both namesake dollars would have been of the same value.
At the foreign exchange window of Investor & Exporter, established by the Central Bank of Nigeria in May 2021, the highest exchange rate of the naira to the American dollar was N412.25, though it closed at N410.18.
Certainly, no patriotic Nigerian wants the naira to plunge so deep into financial abyss.