The naira experienced a significant depreciation against the US dollar, dropping by 3.61% at the official Investor and Exporter (I&E) window on Monday, September 10, 2024.
According to data from FMDQ, the exchange rate closed at N1,637.59, down from the previous day’s close of N1,580.46. This marks the first time the naira has crossed the N1,600 threshold, reflecting ongoing market instability.
During the trading session, the naira fluctuated between an intra-day high of N1,655.00/$1 and a low of N1,499.00/$1, signaling a struggle to find equilibrium.
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Market turnover for the day was recorded at $143.15 million, a decrease from $197.37 million the previous day. The naira’s year-to-date depreciation stands at approximately 86%, driven by inflationary pressures and heightened demand for the dollar.
Nigeria’s external reserves remain at $34.66 billion as of July 2024, while global crude oil prices—a critical factor in the country’s foreign earnings—have been under downward pressure.
Brent crude futures recently fell below $70 per barrel for the first time since December 2021, contributing to the naira’s recent decline.
Despite the current volatility, there remains potential for recovery if global oil prices stabilize or improve. Additionally, the implementation of effective economic measures will be crucial in bolstering investor confidence and fostering a more stable exchange rate environment.