The worth of the Naira hit an unprecedented low, closing at N1,700 to at least one US greenback within the parallel market on the shut of enterprise on Monday, a 0.29 per cent decline in comparison with N1,695 to the greenback which it bought final week Friday.
Whereas the naira slid within the parallel market, it confirmed relative stability within the Buyers and Exporters (I&E) window, closing at N1,641.27 to the greenback. However, this nonetheless represents a 1.14 per cent depreciation from its earlier worth of N1,622.57. The persistent pressures on Nigeria’s overseas change system regardless of a current rally in crude oil costs, which have surpassed $80 per barrel.
Analysts famous that the widening hole between the official and parallel market charges highlighted rising imbalances within the nation’s overseas change dynamics. The naira has been on a steep downward trajectory all through 2024, shedding over half of its worth since January.
Firstly of the yr, the foreign money traded at N907.11, however by October, it had crossed the N1,500 threshold. After reaching a report low of N1,616.5 in February, the naira briefly rebounded to N1,303 in March. Nonetheless, this restoration was short-lived, and by April, it had slipped beneath N1,100, persevering with its plunge.
By late September, the naira had depreciated to N1,668.97, and the newest dip into the N1,700 vary underscores the foreign money’s ongoing weak spot. Within the I&E window, the naira skilled heightened volatility throughout current buying and selling periods, reaching a excessive of N1,675 and a low of N1,591 earlier than settling at N1,641.27.
Buying and selling volumes within the I&E window surged dramatically to $616.73 million, up from $145.56 million the day past, suggesting rising demand for {dollars}.
