On Wednesday, September 11, 2024, the rate of the naira to the US dollar became stronger at N1,558.75 in the official Investor and Exporter (I&E) window.
This was a 4.81% improvement from the day before when it was N1,637.59. This happened because Nigerian oil blends were trading at $75, which is higher than Brent’s price of $70.
The naira’s better performance shows that people feel more positive about the market, bringing it back to the N1,500 range.
Important Information
Closing Exchange Rate: The naira closed at N1,558.75 on Wednesday, September 11, 2024, which was a 4.81% increase from N1,637.59 the day before.
While things can still change quickly, people are feeling more positive about the naira.
Intra-day Highs and Lows: On Wednesday, the naira went as high as N1,659.50 per dollar and as low as N1,540.00 per dollar before settling at N1,558.75.
Market Turnover: $221.24 million was traded on Wednesday, which was more than the $143.15 million on Tuesday.
In August 2024, the total traded was $3.25 billion, down from $4.34 billion in July, which was a decrease of $1.08 billion.
Parallel Market Rates
In the parallel market, the rates ranged between N1,655.00 and N1,645.00, which is a little higher than the official rate.
Market Trends
Since mid-July, the naira has mostly stayed around N1,600, reaching as high as N1,660 before it closed at N1,619 last Friday.
After it went up to N1,580 on Monday, September 9, it closed above N1,630 on Tuesday. But, by Wednesday, the naira had gained 4.8%.
So far this year, the naira has lost about 76% of its value because of inflation and more demand for the dollar. Despite this, it has come back to the N1,500 range.
Meanwhile, Nigeria’s external reserves were $34.66 billion in July 2024.
Things to Know
Nigerian crude oil is trading at about $75 per barrel as of Wednesday. The day before, oil prices were below $70 per barrel for the first time since December 2021 due to worries about global supply and demand.
Nigeria’s oil blends, like Brass River, Bonny Light, and Qua Iboe, are in demand because they have low sulfur and high-quality light oil. They are trading above $74.50 per barrel, doing better than the Brent crude price of $70.00.
What to Expect
- The naira has had some ups and downs, but things are looking more positive as global markets change.
- The strong demand for Nigerian oil, selling at $75 per barrel compared to Brent’s $70, might help the naira.
- If oil prices stay the same or go up, the naira could keep getting stronger, especially if the global economy hurts the dollar.
- Smart economic decisions will also help the naira get stronger.