The Nigerian naira continued its downward trend against the US dollar on Wednesday, September 4, 2024, with the official exchange rate reaching N1,625/$1.
This marks a N14 depreciation from the previous day’s rate of N1,611/$1, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The naira’s performance in the forex market has been marked by significant volatility, with intra-day trading seeing a wide spread between a high of N1,640/$1 and a low of N1,400/$1—a difference of N240.
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This instability reflects ongoing economic challenges, including inflationary pressures and limited foreign exchange reserves, which have been exacerbated by global economic uncertainties.
On the parallel market, the naira also weakened, trading at N1,645/$1, down by N5 from the previous day’s rate of N1,640/$1. Additionally, the naira lost ground against the British pound, trading at N2,160/£1, a drop of N15 from the previous rate of N2,145/£1.
In contrast, the naira remained stable against the Canadian dollar, maintaining a rate of N1,250/CA$1. However, it gained N10 against the euro, trading at N1,800/€1 compared to the previous day’s N1,810/€1.
These fluctuations underscore the challenges faced by the Central Bank of Nigeria in stabilizing the naira, as external factors and domestic economic policies continue to pressure the local currency.