"Why is the dollar rising so quickly against the Naira?"

The Nigerian naira-dollar market has been liberalised twice in recent years, first in June 2016 and then again in June 2023. However, both instances have contributed sign.

Significantly to the rapid decline in the value of the naira. If the monetary authority continues with this option, the currency's strength will continue to shrink at an accelerating pace.

To liberalise a currency means to let the currency's value be determined solely by the forces of demand and supply. In economics, this is called "floating." If the demand for dollars by Nigerians outstrips the demand for naira by Americans, the dollar's value will go up and the naira's value will fall. Similarly, if there is more demand for the naira by Americans and less demand for the dollar by Nigerians, the value of the naira will rise, making it stronger but the local currency (Naira) is not being purchased rather it is vice versa thereby leading to a significant decline in the value of Naira in real-time.