Naira Depreciates by 40% Against Dollar in First Half of 2024

Naira Depreciates by 40% Against Dollar in First Half of 2024

The Naira depreciated by over 40 percent in the first half of 2024 at the foreign exchange market.

According to FMDQ data, the Naira weakened to N1505.30 per dollar on Friday from between N896.6 and N907.11, where it closed on December 29, 2023.

The figures indicate that the Naira has experienced instability against other currencies in recent months, despite appreciating for several months before depreciation began in mid-April 2024.

The Naira peaked at N1,665.50 in February 2024 and hit its lowest point in April, standing at N1,140 and N1,230.61 in the official and parallel foreign exchange markets, respectively.

This depreciation follows several Central Bank of Nigeria (CBN) policies, including the unification of the FX market, a circular on the operation of International Money Transfer Operators, interventions with Bureau De Change operators, regulation on excess FX to banks, and the recent withdrawal of the Price Verification System Portal for importers.

Despite these policy reforms, the Naira has continued to fluctuate against the Dollar and other currencies in the foreign exchange market.

In April 2024, the Naira was deemed the best-performing currency but slipped to the worst-performing in May, according to Bloomberg.

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

This depreciation occurred despite an increase in Nigeria’s external reserves, which stood at $34.07 billion on June 26, 2024.