The Nigerian naira got stronger against the US dollar and ended the day at N1,576.10 in the official Investor and Exporter (I&E) window on Thursday, September 26, 2024.
This is a 5.48% improvement from the previous day’s closing rate of N1,667.52. It means the naira is gaining strength despite the market being very unstable.
The amount of money traded in the market also went up a lot. It grew by 232.5%, from $100.47 million on Wednesday to $334.05 million on Thursday.
Main Points
Closing Exchange Rate: On September 26, the naira closed at N1,576.10 per dollar. This is a big jump of 5.48% from the previous day when it was N1,667.42 per dollar.
Intra-day Highs and Lows: During the day, the naira fluctuated. It reached as high as N1,699.00 per dollar and dropped to a low of N1,567.00 before settling at N1,576.10 per dollar.
Market Turnover: The money traded in the I&E window skyrocketed to $334.05 million from $100.47 million the day before. To give you an idea, the total trade for August was $3.3 billion, which is less than July’s $4.34 billion.
Parallel Market Rates: In the parallel market, the naira started at N1,650.41 against the dollar. Throughout the day, it ranged between N1,646.58 and N1,660.38, eventually closing at N1,660.38.
Market Trends
The naira has had a tough time since it fell below N1,600 in July due to the unstable market.
Since then, it has fluctuated between N1,500 and N1,600. So far this year, the naira has fallen by about 75%, mainly because of high inflation and a high demand for foreign currency.
However, Nigeria’s external reserves have improved a little. They increased from $36.305 billion at the end of August to $36.730 billion by mid-September.
What You Should Know
Recently, the federal government announced that ExxonMobil plans to invest $10 billion in Nigeria’s offshore oil operations.
Also, the Central Bank of Nigeria (CBN) has started selling an extra $20,000 to each Bureau de Change (BDC) operator at an exchange rate of N1,590 per dollar.
This plan is part of a bigger strategy to ease the demand for the naira. According to CBN guidelines, BDC operators can sell this foreign exchange to authorized users at a margin not more than 1% above the buying rate.
What to Expect
- News of ExxonMobil’s huge investment is good and shows a strong economic environment.
- This kind of good news could make big players in the currency market feel more positive about the naira in the long run.
- Also, the CBN’s plan to give dollars to BDCs aims to keep the naira steady by making more foreign money available.
- This move is expected to help reduce pressure in the parallel market, creating a more balanced currency situation.