The value of the naira compared to the US dollar went down by 3.61% at the official Investor and Exporter (I&E) window on Monday, September 10, 2024.
Data from FMDQ, which tracks official currency deals, showed that on September 10, the naira fell to N1637.59.
The exchange rate went over N1,600, compared to the previous day’s close at N1,580.46.
Important Data
Closing Exchange Rate: The naira ended at N1,637.59 on September 10, 2024, which was a 3.61% drop from the previous close of N1,580.46 on Monday.
This shows short-term changes, but investors are waiting for more stable times.
Highs and Lows in a Day: During trading, the naira reached a high of N1,655.00 for $1 and a low of N1,499.00 for $1, as it tried to settle against the dollar.
Market Transactions: The market turnover for the day was $143.15 million, which was less than $197.37 million the day before.
In August 2024, the total market turnover was $3.25 billion, down from $4.34 billion in July, a decrease of $1.08 billion.
Parallel Market Rates
In the parallel market, rates were between N1,646.38 and N1,638.02, slightly above the official rate.
Market Trends
Since mid-July, the naira has been around the N1,600 zone, reaching up to N1,660, and closing at N1,619 last Friday.
On Monday, September 9, the naira appreciated to N1,580.46 but closed above N1,630.
So far this year, the naira has fallen by about 86% due to rising prices and higher demand for dollars. Nigeria’s external reserves were at $34.66 billion in July 2024.
What You Should Know
World oil prices have been dropping, and oil is very important for Nigeria’s foreign income.
Brent crude futures went below $70 per barrel for the first time since December 2021 because of worries about global supply and demand.
Prices for U.S. West Texas Intermediate (WTI) crude also dropped by 42 cents, or 0.6%, to $68.29 per barrel.
What to Expect
- The naira’s recent drop shows ongoing changes, but there might be a brighter future as global markets change.
- Oil prices, important for Nigeria’s foreign income, are currently low, but things might get better.
- If oil prices go up, the naira could get stronger against the dollar.
- Smart economic measures are key to keeping investor trust and making the exchange rate stable.