The Nigerian naira appreciated to N1,580.46 against the US dollar on Monday, September 9, 2024, at the official Investor and Exporter (I&E) window.
This marked a 0.81% improvement from the N1,619.95 recorded during the previous trading session on Friday.
Data from FMDQ, a platform that tracks official currency transactions, indicated that the naira’s value fluctuated over recent days, staying close to the ₦1,600 mark amid market uncertainties.
During Monday’s trading session, the naira experienced an intra-day high of N1,660/$1 and a low of N1,570/$1, reflecting the currency’s ongoing volatility. Market turnover saw a slight increase, rising to $197.37 million from Friday’s $185.79 million.
However, monthly turnover figures showed a declining trend, with total market turnover in August hitting $3.25 billion, down from July’s $4.34 billion—a drop of $1.08 billion, underscoring reduced market activity.
Parallel market rates, where unofficial trades take place, were reported to range between N1,606.78 and N1,650.00, remaining slightly below the official I&E window rates.
Market analysts attribute the naira’s 86% depreciation year-to-date to inflationary pressures and an increasing demand for US dollars in the face of limited supply.
The Central Bank of Nigeria (CBN) has been actively working to mitigate this trend by selling dollars to Bureau De Change (BDC) operators at favorable rates.
In an effort to stabilize the naira and curb further depreciation, the CBN announced plans to sell $20,000 to eligible BDC operators at a rate of N1,580/$1.
BDCs have been directed to sell these dollars to end users at no more than 1% above the purchase rate, a move designed to ease demand pressures.
This intervention comes amid concerns over falling global oil prices, which could negatively impact Nigeria’s dollar earnings and, by extension, its exchange rate stability.
