On October 4, 2024, the money called naira got a little stronger against the U.S. dollar. It ended the day at N1,631.21 when people exchanged money. This happened while the world oil price was thinking about reaching $80 per barrel.
The naira’s value improved by 1.69% from the day before when it was N1,659.26. This improvement happened even though lots less money was traded on that day.
Less trading happened because people only traded $238.36 million. The day before, the trading was much more, around $450.39 million.
Important Things to Know
End Exchange Rate: On October 4, naira was valued at N1,631.21 for each dollar. This is 1.69% better than the earlier rate of N1,659.26.
Up and Down Values: During the day, the naira’s value went up and down. The highest was N1,679.00, and the lowest was N1,580.00 before it settled at N1,631.21.
Trading Total: People traded a total of $238.36 million that day. This was a big drop from $450.39 million traded the previous day. For all of September, people traded a total of $3.3 billion.
Street Market Rates: In the street market, the naira started at N1,669.49 for each dollar. It changed between N1,673.34 and N1,618.00 during the day, finally closing at N1,618.75.
What’s Happening in the Market
In September, the naira moved slowly and couldn’t stay stable because things were changing a lot in the market.
Back in March, one dollar was N1,300, but things got tougher, especially in August when it reached about N1,500. By September, the naira lost more value.
This year, the naira lost about 75% of its value because prices went up and more people wanted dollars.
Nigeria saved more money and had $39.07 billion as of September 19, 2024. This money can help make the naira stronger soon.
Things You Should Know
Oil is very important for Nigeria. In October, oil prices started to get better after going down in September.
In October, the type of oil from Nigeria and Brent oil stayed around $77 per barrel. This happened because there were worries about problems in the Middle East that could make oil harder to get.
When Iran, a big oil country, had more issues with Israel, people worried less oil would come out and prices went up.
What Might Happen Next
- Â If oil prices keep going up, countries in OPEC like Nigeria might earn more money. This could help with their money problems and make the naira stronger.
- Getting more money from oil could make Nigeria’s savings bigger, and this might make people feel better about the naira.
- Also, if the government makes smart money choices and if the U.S. dollar gets weaker, the naira might become even more valuable.