On October 2, 2024, the Nigerian naira lost value compared to the US dollar. It closed at N1,669.15 in the special I&E market where investors trade currencies.
This was an 8.25% drop from N1,541, which was the value at the end of September.
The amount of money exchanged in the market also went down. On Monday, $181.86 million was exchanged, but by Wednesday, it fell to $176.45 million.
Important Numbers
Exchange Rate at Close: On October 2, the naira ended trading at N1,669.15 per dollar. This was down 8.25% from N1,541 the previous session.
Highest and Lowest Values of the Day: During the day, the naira’s value went up and down a lot. It reached a high of N1,699.00 and a low of N1,550.00 before closing at N1,669.15.
Market Activity: The total money traded in the I&E window was $176.45 million, a drop from $181.86 million before. In all of September, $3.3 billion was traded in this market.
Rates Outside Official Market: In places outside the official market, the naira started at N1,668.33 per dollar. It went as high as N1,672.50 and as low as N1,668.33 before closing at N1,670.74.
Current Market Situation
Since July, when the naira went below N1,600, it has faced many difficulties. It has been unstable, moving between N1,500 and N1,600, trying to find balance, especially when the dollar was weak.
In September, the naira didn’t move much. It was trying to stabilize in a market that kept changing.
This year, the naira has become about 75% weaker mainly because prices in general (inflation) are going up, and more people are wanting foreign money.
On the bright side, Nigeria’s savings of money from other countries went up a little. By the middle of September, it increased from $36.305 billion to $36.730 billion.
Things You Should Know
OPEC, the oil group, rejected a claim saying oil might drop to $50 per barrel. This claim was said to be linked to Saudi Arabia’s Oil Minister.
Also, Nigeria’s government has given some tax breaks for projects in deep offshore oil and gas. There are also tax reliefs for LPG, CNG, diesel, and more products.
What Might Happen Next
- Because OPEC disagreed with the prediction about oil prices falling, oil prices and the naira might stay steady.
- In addition, the government’s tax breaks and VAT exemptions for offshore oil and gas projects might draw more investors to the area.
- If there are more investments, it could boost how much oil and gas is made and sent out of the country, helping the naira even more.