On October 11, 2024, the money used in Nigeria, called the naira, got weaker compared to the U.S. dollar. It ended the day at N1,641.27 per dollar in the official trade area known as the Investor and Exporter (I&E) window. Even though oil prices stayed above $79 for each barrel, the naira still dropped.
This change shows how the situation with naira and foreign money is changing. The naira’s value went down by 1.15% from the day before when it was N1,622.57 per dollar.
But, there was a lot more trading happening in the I&E window, with the market turnover jumping to $616.73 million. This was a big increase, 323% more than the $145.56 million traded the day before.
Important Facts:
Exchange Rate at Close: On October 11, 2024, the naira’s value was N1,641.27 for one dollar, a fall of 1.15% from the previous day’s N1,622.57.
Highest and Lowest Points in a Day: While trading, the highest the naira reached was N1,675.00, and the lowest was N1,591.00. It finally settled at N1,641.27.
Market Turnover: The amount of money traded in the I&E window reached $616.73 million, way higher than the $145.56 million from the day before. To understand, the total trading amount for September was $3.3 billion.
Unofficial Market Rates: In the unofficial market, the naira started the day at N1,620.39 per dollar. It changed a bit, going as high as N1,620.44 and as low as N1,620.39, finally ending at N1,620.41.
Market Patterns:
Throughout 2024, the exchange rate in Nigeria has been under pressure. This made the naira lose a lot of its value.
The value of the naira has fallen over 70% since January. It started the year at N907.11 per dollar and went beyond N1,500 by October.
At the start of 2024, the naira dropped quickly, reaching its lowest point at N1,616.53 per dollar in February. In March, it got a bit better, balancing around N1,303 per dollar.
However, this didn’t last long, as the naira went below N1,100 in early April and fell to N1,002 by mid-month.
After temporarily getting stable, the naira started losing value again, dropping to N1,668.97 by the end of September.
Things to Know:
- The World Bank said Nigeria is one of the top ten countries most affected by rising food prices. In their September report, they said Nigeria is the fifth hardest-hit in the world and third in Africa, after Malawi and Liberia.
- In another update, the Nigerian government said that fuel sellers could get petrol straight from the Dangote refinery, skipping the Nigerian National Petroleum Company Limited (NNPC).
- Finance Minister Wale Edun shared that they had started buying and selling crude oil using the naira.
What Might Happen Next:
- Experts think the naira could get stronger, especially if positive economic changes happen.
- Good policy changes could help people feel more optimistic about the naira, balancing out things like Nigeria’s high food prices.
- Also, a weaker dollar or helpful economic shifts could give the naira a needed boost.