On Wednesday, the naira, which is Nigeria’s money, got weaker against the dollar. It ended the day at N1,507.83 for $1. This information comes from the FMDQ, a place where currencies are officially traded.
In June, the exchange rate was fairly stable, moving between N1,470 for $1 and N1,480 for $1. But yesterday, it crossed N1,500 for the first time.
In the last eight days, the naira has been slowly losing value each day, between 0.02% and 0.71%. This shows that the naira, which was stable before, is now going down.
This new trend of losing value suggests that the naira might become even more unpredictable, which worries people about its future.
What the data is saying
- According to the FMDQ, the exchange rate closed at N1,507.83 for $1 on June 26, 2024. This is the lowest since May 16, 2024, when it was N1,533.99 for $1. This level is close to a five-week low.
- On June 26, the naira fell by 0.47% from the previous day’s rate of N1,500.79 for $1.
- Total money exchanged for the day was $176.39 million, an increase of 28.99% from the previous day’s $136.75 million.
- During the day, the highest rate was N1,523 for $1 while the lowest was N1,430.91 for $1. This shows there is a lot of movement (volatility) in the currency market.
What you should know
This fall in value happened even though the Governor of the Central Bank of Nigeria, Yemi Cardoso, said the worst times for the naira are over.
In an interview in London with Bloomberg TV, Cardoso said he is pleased with how the bank has handled the currency problems recently.
When asked if the naira will get stronger or stay where it is, he said it depends on many factors, including how the government’s money is managed.
Cardoso added that they are still working on improving the economy, which will help the naira.
Earlier, Newslodge predicted that the naira might get weaker as many Nigerians travel abroad for vacations during the summer.
The falling naira is troubling because it means the currency is under a lot of pressure even though the Central Bank has tried different ways to keep it stable.