The value of the naira compared to the US dollar went up to N1,546.41 at the official Investor and Exporter (I&E) window on Friday, September 13, 2024. This was because there’s news that Dangote’s big factory will start sending out petrol on Sunday.
This increase is a 6.3% rise from the previous day’s rate of N1,649.76. The Nigerian stock market is also doing well, making people feel positive about the future.
Even though the USD/NGN currency pair has been changing a lot, the naira is showing signs of getting stronger. It moved back to the 1,500 range.
Closing Exchange Rate: The naira finished at N1,546.41 on Friday, September 13, 2024, which is a 6.3% jump from Thursday’s N1,649.76.
While there are still short-term ups and downs, more people are starting to believe in the naira.
Parallel Markets
In the unofficial or “parallel” market, the naira went up to N1,614.20 on September 13, 2024. This is a 0.9% gain from the previous day’s N1,630.00.
The naira has been trying to bounce back from earlier drops, especially after it went past N1,630.00 in July.
This comeback shows that even with ongoing challenges, the currency is slowly getting stronger. People in the market are reacting positively to new economic plans and news.
Market Trends
Since mid-July, the naira has been moving between N1,500 and N1,600, looking for stability in a volatile market.
After the Investor and Exporter rate fell to N1,649.00 on Thursday, the currency bounced back to N1,546.41 on Friday, helped by a hopeful market outlook.
Though the naira has dropped by about 76% this year due to inflation and more people wanting dollars, it has shown strength by going back to the 1,500 range.
By July 2024, Nigeria’s external reserves were $34.66 billion.
What You Should Know
The Dangote refinery will start sending petrol to NNPC on Sunday, says Wale Edun, the Minister of Economy.
The Federal Executive Council (FEC) has approved that crude oil can be sold to local refineries in naira. This should lower the need for dollars and reduce pressure on the naira.
Nigerian oil blends are known for their good quality. They’re in demand and are currently selling for a higher price compared to Brent crude.
What to Expect
- Even though the naira has been changing a lot, positive feelings are likely to grow due to the news about Dangote’s petrol distribution.
- Selling petroleum products to refineries in naira could lower the demand for dollars in oil markets.
- Also, the high demand for Nigerian oil, which sells at $75 per barrel compared to Brent’s $70, might further ease the pressure on the naira.
- However, smart economic choices will be key to making sure the naira keeps getting stronger.