The money that people use in Nigeria, called the Naira, became a little less valuable when compared to the US dollar. This happened because the US dollar started getting stronger again after it went down recently.
On October 30, 2024, if you were in Nigeria and wanted to trade Naira for US dollars, the official rate was N1,631.17 for $1. This means you needed 1,631.17 Naira to get one US dollar.
Lately, it’s been hard for Nigeria to keep its money strong because there’s a lot of money floating around, and the government is spending more than it makes. Imagine if you had too many toys to play with but not enough money to buy a new one—that’s a bit like what’s happening with Nigeria’s money.
In September 2024, there was a huge pile of money in Nigeria—around N109 trillion! This is a lot more than in September 2023, when it was just N66.94 trillion, which shows how quickly things are changing.
To help make the situation better, the Central Bank of Nigeria (CBN) and the International Finance Corporation (IFC) decided to work together. They want to help Nigerian businesses get more money by reducing risks that come with exchanging foreign money for Naira, so they signed an important agreement.
The IFC, which is a part of the World Bank, wants to give Nigeria a lot more help, hoping to provide more than $1 billion to different parts of the country. They plan to help businesses that include small shops, the arts, building houses, farming, and energy.
“These businesses need money in the Naira currency, and our partnership with the central bank will help give them the money they need,” said the statement.
Good news for the US dollar!
The US dollar got stronger after it went down earlier. This change happened because there was a lot of different news about how the US economy was doing.
The US Dollar Index, which is like a report card for the US dollar compared to six other big money currencies, went down at first because some economic reports were confusing. One report talked about how many new jobs were created in the US, and another talked about how fast the economy was growing. The job numbers were better than expected, with 233,000 new jobs, but the economy didn’t grow as much as everyone hoped.
People who invest their money are waiting to hear more news about US jobs on Friday. This could tell them more about how strong the job market is. Before the last report, the dollar index was below 104, but now it has gone up a little to 104.02.
Two kinds of money that the US dollar is compared to, like the Euro and the British pound, went down a bit. The Euro was at $1.0871, and the British pound was at $1.2953.