Sure, let’s rewrite this blog post in simpler terms for easy understanding. I’ll keep it engaging and informative.
—
On October 15, 2024, Nigeria’s money, called the naira, got weaker when compared to U.S. dollars. At the end of the day, one dollar was equal to N1658.97 in a special market for investors and businesses.
This happened because prices of things in Nigeria went up. In September, the price increase was 32.70%, which is a little higher than it was in August, at 32.15%.
The naira got weaker by 6.83% because people were not buying and selling as much on the FMDQ exchange, which tracks these activities.
On one day, the total amount of money traded was $343.71 million, but the next day, it fell to $217.86 million. That’s a big change!
Important Numbers:
Ending Exchange Rate: On October 14, 2024, the naira stopped trading at N1658.97 per dollar. This was a 6.38% drop from the day before when it was N1,552.92.
Highs and Lows during the Day: The naira’s value changed a lot. At one point, it was N1,670.50 for a dollar. At another point, it was N1,556.29, but it settled at N1658.97.
Market Activity: People traded less overall. The total money traded dropped to $217.86 million from $343.71 million just the day before. In all of September 2024, $3.3 billion was traded.
Different Market Rates: In another market, the naira started at N1,630.35 per dollar. It moved between N1,636.62 and N1,630.35, finally ending at N1,634.66.
How the Market is Moving:
In 2024, the naira has been losing value quickly. In January, one dollar was worth N907.11. By October, the value shot past N1,500.
Early in 2024, the lowest value was N1,616.53 in February. The naira got a short break in March when it was around N1,303 for a dollar.
But soon, it dropped again to under N1,100 in early April. In the middle of the month, it was N1,002. By September, it closed at N1,668.97 and October has continued to be up and down.
Things to Know
One problem is rising prices of goods, which was at 32.70% in September 2024. This is up from 26.72% last year.
Oil, a big money maker for Nigeria, was also down. In September, Nigeria made 33,000 fewer barrels per day compared to August, according to OPEC’s report.
What Could Happen Next:
- Even though the news isn’t very good right now, some people hope the naira will get better.
- If certain policies change for the better and outside factors like a weaker dollar happen, the naira might gain back some strength.
- But it’s still not clear if the naira will bounce back since high prices, lower oil production, and other issues are affecting the Nigerian economy.