The Naira Gains Ground Against the US Dollar in 2024

The Naira, Nigeria’s currency, showed resilience as it recorded its third consecutive gain against the US dollar in the official foreign exchange market on Monday. According to data from FMDQ, the Naira appreciated to N856.57 per dollar from N869.13 at the close of business on Friday. This marks a significant N12.56 or 1.45% increase in the local currency’s value compared to the previous trading day.

Notably, this recent surge indicates the third instance of the Naira strengthening against the dollar since Thursday. However, the parallel market painted a slightly different picture as the Naira faced a setback, dropping to N1,245 per US dollar from N1,255 on Friday.

The fluctuating dynamics between the official and parallel foreign exchange markets reveal the complexities of Nigeria’s currency landscape. These developments unfold against the backdrop of the Nigerian federal government’s reception of a $2.25 billion foreign exchange support loan from the African Import-Export Bank just a week ago, signaling efforts to address the forex crisis.

As the Naira navigates through these shifts, the global financial community closely monitors its performance amid broader economic implications.