The Nigerian naira has depreciated to N1,700 per dollar in the parallel market, marking the lowest rate in seven months. Despite a temporary rise in the official market, the naira continues to face fluctuations. The Central Bank of Nigeria is implementing reforms to stabilize the currency.
On September 27, 2024, the Nigerian naira fell to a new low in the parallel market, trading at N1,700 per dollar. This represents a 1.49% drop from the previous day’s rate of N1,675, marking the lowest value for the naira since February 19, when it reached N1,730.
In Lagos, currency traders reported a buying rate of N1,680 and a selling rate of N1,700, creating a profit margin of N20. Conversely, the official exchange rate improved, rising by 2.24% from N1,576.1 to N1,540.78 during the same period. The FMDQ Exchange indicated that the dollar's value fluctuated, with a high of N1,691 and a low of N1,530.
Throughout the week, the naira has seen a continuous depreciation, starting at N1,665 on Monday, dropping to N1,670 on Tuesday, and then N1,680 on Wednesday before Thursday's slight recovery to N1,675. In the official market, the naira also experienced a decline, hitting N1,562.66 on Monday but later rising to N1,576.1.
In response to these fluctuations, the Central Bank of Nigeria (CBN) has initiated measures aimed at improving liquidity in the foreign exchange market. CBN Governor Olayemi Cardoso noted that recent interest rate increases have helped restore some level of confidence in the naira, amidst ongoing efforts to stabilize the currency.
