Naira’s 40% Decline Against Dollar in First Half of 2024

The Naira experienced a depreciation of more than 40 percent during the first half of 2024 in the foreign exchange market.

According to FMDQ data, the Naira weakened to N1505.30 per dollar on Friday, a significant drop from the range of N896.6 to N907.11 it had closed at on December 29, 2023.

These numbers indicate that the Naira has been facing volatility against other currencies in recent months, following a period of appreciation that was interrupted by depreciation in mid-April 2024.

In February 2024, the Naira reached its peak at N1,665.50, while it hit its lowest point in April at N1,140 and N1,230.61 in the official and parallel foreign exchange markets, respectively.

This trend is attributed to various policies implemented by the Central Bank of Nigeria, such as the unification of the FX market, regulations on International Money Transfer Operators, interventions for Bureau De Change operators, restrictions on excess FX to banks, and the recent removal of the Price Verification System Portal for importers.

Despite these policy changes, the Naira continues to fluctuate against the Dollar and other currencies in the foreign exchange market.

In April 2024, the Naira was recognized as the best-performing currency, but it later slipped to become the worst-performing in May, as reported by Bloomberg.

As of Friday, the Naira closed at N1505.30 and N1515 at the official and parallel foreign exchange markets, respectively.

These developments occur despite the growth in Nigeria’s external reserves, which reached $34.07 billion on June 26, 2024.