ABUJA, NIGERIA (Media Talk Africa) — The Nigerian Naira experienced a significant depreciation of over 40% in the first half of 2024, according to data from the FMDQ Securities Exchange. On Friday, the Naira weakened to N1505.30 per US dollar, a sharp decline from the range of N896.6 to N907.11 it recorded on December 29, 2023.
The FMDQ data highlights a period of substantial instability for the Naira, which had previously enjoyed months of appreciation before a sharp depreciation began in mid-April 2024. The currency reached its highest peak at N1,665.50 in February 2024 but fell to a low of N1,140 in the official market and N1,230.61 in the parallel market in April.
This volatility comes despite several policy measures introduced by the Central Bank of Nigeria (CBN), including the unification of the foreign exchange (FX) market, new regulations for International Money Transfer Operators, intervention measures for Bureau De Change operators, and the recent withdrawal of the Price Verification System Portal for importers.
In April 2024, the Naira was recognized as the best-performing currency globally, but its performance deteriorated in May, according to Bloomberg. As of Friday, the Naira closed at N1505.30 in the official FX market and N1515 in the parallel market.
The depreciation occurs against the backdrop of an increase in Nigeria’s external reserves, which stood at $34.07 billion on June 26, 2024. Despite this increase, the Naira continues to face challenges in stabilizing against the US Dollar and other foreign currencies.
