Naira shows mixed trends: Marginal dollar loss, gains elsewhere

The naira exhibited a mixed performance in the foreign exchange markets on Wednesday, December 18, 2024, reflecting the ongoing volatility in Nigeria’s currency dynamics.

At the official foreign exchange market, the naira marginally depreciated against the U.S. dollar, trading at ₦1,544.20/$1, down from ₦1,544.05/$1 recorded on Tuesday. This represents a minor decline of ₦0.15.

Contrasting the official market, the naira appreciated in the black market, closing at N1,660/$1, compared to N1,675/$1 on Tuesday. This marks a significant gain of N15 for the local currency against the dollar in the informal exchange space.

Against the British Pound, it appreciated by N40, trading at  N2,160/£1, compared to N2,200/£1 the previous day.

Against the Euro, it gained N10, trading at N1,730/€1 as opposed to N1,740/€1 on Tuesday.

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Against the Canadian Dollar, the naira maintained stability at N1,280/CA$1.

The naira’s performance underscores the challenges of currency stability in Nigeria, influenced by a combination of supply-demand imbalances, monetary policy adjustments, and external economic pressures.

Market analysts note that the naira’s appreciation in the parallel market could indicate improved dollar supply or reduced demand pressures, while the marginal loss in the official market reflects persistent constraints in Nigeria’s foreign exchange reserves.

The mixed results highlight the ongoing adjustments in the currency markets, with the naira’s performance varying across different segments and foreign currencies.