Naira Gains Against Dollar, Hits N1,540.78 at I&E Window Despite Turnover Drop

On September 27, 2024, the naira got stronger compared to the US dollar, closing at N1,540.78 in the official Investor and Exporter (I&E) window.

This was a 2.24% improvement from the previous day’s rate of N1,576.10. The naira is trying to stay strong against the dollar.

However, the amount of money traded fell a lot, dropping by 36% from $334.05 million on Thursday to $212.31 million on Friday.

Important Numbers 

Closing Exchange Rate: On September 27, the naira finished trading at N1,540.78 for one dollar, which was 2.24% better than the N1,576.10 rate the day before.

Highest and Lowest Rates During the Day: During the trading day, the naira was unstable. It went up to N1,691.00 and also went down to N1,530.00 before ending at N1,540.78.

Money Traded: The amount of money traded in the I&E window went down to $212.31 million from $334.05 million the day before. For example, in August, the total money traded was $3.3 billion, which was less than July’s $4.34 billion.

Black Market Rates: In the black market, the naira started at N1,668.49 for one dollar, moving between a high of N1,669.50 and a low of N1,643.04, and then closing at N1,668.49.

Market Trends 

Since going below N1,600 in July, the naira has had a tough time. It has been moving between N1,500 and N1,600 as it looks for chances when the dollar is weak.

This year, the naira has lost about 75% of its value, mostly because of high inflation and the need for foreign money.

But, Nigeria’s external reserves have gotten a bit better, rising from $36.305 billion at the end of August to $36.730 billion by mid-September.

What You Should Know 

Recently, the Nigerian government announced that ExxonMobil plans to invest $10 billion in offshore oil operations in Nigeria.

Also, the Central Bank of Nigeria (CBN) has started giving an extra $20,000 to each Bureau de Change (BDC) operator, with the exchange rate being N1,590 per dollar.

This is part of a larger plan to reduce the demand for naira. According to CBN rules, BDC operators can sell this foreign money to people who need it at a price not more than 1% above the buying rate.

What to Expect 

• ExxonMobil’s investment plans are a good sign for the economy. It might make people more positive and could make big currency players feel hopeful about the naira in the long run.

• Moreover, the CBN’s plan to give dollars to BDCs aims to steady the naira by making more foreign money available.

• This plan should ease the pressure in the black market, helping to create a more balanced currency situation.