In a turbulent start to 2024, the Nigerian Naira has faced significant depreciation, plunging by more than 40% in the foreign exchange market during the first half of the year, according to data from FMDQ.
The currency weakened to N1505.30 per dollar by the end of June, a contrast from its previous stability closing between N896.6 and N907.11 in December 2023.
The Naira’s journey through the year has been marked by volatility, despite several months of appreciation earlier in the year. It reached its highest peak at N1,665.50 in February, only to plummet to lows of N1,140 and N1,230.61 at the official and parallel markets respectively by April.
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This instability coincides with a series of policy measures by the Central Bank of Nigeria (CBN), aimed at reforming the foreign exchange market.
These include efforts to unify the FX market, new guidelines for International Money Transfer Operators, interventions for Bureau De Change operators, regulations on excess FX to banks, and the recent withdrawal of the Price Verification System Portal for importers.
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Despite these reforms, the Naira has struggled to maintain its value against the Dollar and other major currencies. In April 2024, it was hailed as the best-performing currency, only to be dubbed the worst-performing by May, as reported by Bloomberg.
As of the latest reports, the Naira closed at N1505.30 and N1515 at the official and parallel markets respectively on Friday. This development unfolds against the backdrop of Nigeria’s external reserves, which stood at $34.07 billion as of June 26, 2024.
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