Economic Alarm: Naira’s 40% Decline Sends Shockwaves Through Markets

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

FMDQ data revealed that the Naira weakened to N1505.30 per dollar on Friday, down from between N896.6 and N907.11, which it closed at on December 29, 2023.

The figures indicate that the Naira has experienced ongoing instability against other currencies in recent months, despite a period of appreciation prior to a depreciation starting in mid-April 2024.

In February 2024, the Naira reached its highest peak at N1,665.50, while its lowest point occurred in April, standing at N1,140 in the official market and N1,230.61 in the parallel market.

This situation follows the Central Bank of Nigeria’s various policies, including the unification of the FX market, changes in 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 by the apex bank, the Naira has continued 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 slipped to the worst-performing by 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 development occurred despite an increase in Nigeria’s external reserve, which stood at $34.07 billion on June 26, 2024.