The naira, which is Nigeria’s currency, improved against the US dollar, closing at N1,541.52 on Friday, September 20, 2024, in the official Investor and Exporter (I&E) window.
This small gain of 0.16% is from the N1,544.02 it was the day before on September 19, 2024. The naira is trying to stay steady around N1,500.
Good news, like Nigeria working on big projects worth $29.8 billion and making deals with Russian companies to restart a major steel plant, might help the naira become stronger.
Important Information
Closing Exchange Rate: The naira ended at N1,541.52 on September 20, which is a bit better than the previous day’s rate of N1,544.02.
Intra-day Highs and Lows: On Friday, the naira reached its highest at N1,672.00 per dollar and its lowest at N1,535.00 per dollar before closing at N1,541.52.
Market Turnover: The amount of money exchanged in the market increased to $190.57 million on September 20, which is a 117% increase from $87.51 million the day before. In August, the total was $3.3 billion, down from $4.34 billion in July.
Parallel Market Rates: In another market where people trade currency directly, the naira started at N1,640.32 and had some changes, moving between N1,650.33 and N1,617.52 before ending at N1,639.45.
Market Trends
Since mid-July, the naira has been around N1,600 but has had trouble getting stronger after going down to N1,400 in May.
This year, the naira has lost about 76% of its value due to high inflation and more people wanting dollars. Despite this, Nigeria’s external reserves increased a bit from $36.305 billion on August 30 to $36.730 billion by September 10.
What to Know
The naira is trying to stay around N1,500, helped by a weaker US dollar.
The government’s deal with Russian companies to restart a big steel plant and the National Iron Ore Mining Company is expected to make the economy look better.
Nigeria’s oil company, NNPC, has restarted talks with investors about two big projects worth $29.8 billion.
What to Expect
- The naira could get stronger in the coming weeks if there is more good news, like the revival of important projects and a weak US dollar.
- Positive economic policies and market conditions may make big currency traders support the naira for a long time, pushing it to a stronger position.
- Government policies aimed at reducing the demand for dollars will help strengthen the naira further.