On Monday, September 23, 2024, the exchange rate between Nigerian naira and US dollar dropped to N1,562.66 at the Investor and Exporter (I&E) window.
This is a 1.37% drop from N1,541.22, which was the rate on September 20, 2024. For some time now, the naira has been around N1,500 but cannot stay steady because of changing market conditions.
Market Turnover also fell by 47%, going from $190.57 million on Friday to $100.21 million on Monday.
Key Information
Closing Exchange Rate: The naira ended at N1,562.66 on September 23, 2024, which is a 1.37% drop from the earlier rate of N1,541.22.
Intra-day Changes: During Monday’s trading, the naira was unstable. It went as high as N1,675.00/$1 and as low as N1,540.00/$1, before settling at N1,562.66 by the end.
Market Turnover: The amount of money in the I&E window sharply reduced, hitting $100.21 million on September 23, a 47% decrease from $190.57 million on Friday.
The total market turnover in August was $3.3 billion, which decreased from $4.34 billion in July. This shows a continuing slowdown in dollar availability.
Parallel Market Rates: The naira started at N1,639.45 in the parallel market, experiencing some ups and downs. It moved between N1,644.68 and N1,615.51 during the day, closing at N1,638.62.
Market Trends
Since mid-July, the naira has mostly stayed in the N1,600 range and has had trouble gaining value against the dollar.
This trend started earlier this year when the naira dropped to ₦1,400 in May.
So far this year, the naira has lost about 76% of its value. This is because of high inflation and more demand for foreign currency. Nigeria needs dollars for importing goods and other transactions.
Despite these issues, Nigeria’s external reserves have grown a bit. Between August 30 and September 10, reserves increased from $36.305 billion to $36.730 billion.
Important Details
Nigeria is close to getting approval from the World Bank for three major loan projects totaling $1.5 billion.
According to the World Bank, these loans should be approved by September 26, 2024.
This money will help with government reforms, healthcare, and essential infrastructure development.
What This Means:
- The upcoming $1.5 billion loan from the World Bank might help improve Nigeria’s economy and strengthen the naira.
- Handled well, this loan can reduce economic difficulties, lower inflation, and make the naira stronger.
- More foreign reserves from this loan can reduce pressure on the naira, helping it to hold its value against the dollar.