Naira Continues in Its Declining State as It Trades 1,089.51/$

The Nigerian Naira traded 1,000/$ for the second time in 2024 on the official foreign exchange (FX) market.

On Tuesday, the Naira fell to 1,089.51/$ from how it traded the previous day, which was 856.57/$ on Monday at the Nigerian Autonomous Foreign Exchange Market (NAFEM). This was according to data from the FMDQ Exchange.

The first time Naira was exchanged this year for N1,000 against the dollar was on January 3, 2024, when it fell to N1,035.12/$ at the NAFEM.

On December 8, Naira fell to 1,099.05/$ and 1,043.09/$ on December 28, 2023, on the FX market.

During Tuesday’s trading, willing buyers and sellers quoted dollar for N1,251, which represented the highest bid rate, and at N720/$, the lowest spot rate.

The daily FX market turnover witnessed a 63.34 per cent surge to $97.45 million on Tuesday, compared to the $59.66 million recorded the day before.

The surge can be attributed to global market dynamics and domestic fiscal challenges.

The fall in Naira increases concerns over the implications for households and the Nigerian economy.

As the Naira continues in a declining state, the cost of imported goods will continue to rise, which will lead to increased inflation, which will impact the purchasing power of households.

On the other hand, businesses will experience challenges importing goods following the increased cost, which will hinder economic growth in the country.

In the latest monthly economic report released by the Central Bank of Nigeria (CBN), it has been revealed that the total foreign exchange (FX) inflow into the Nigerian economy experienced a notable 10 per cent month-on-month increase, reaching USD 5.7 billion in August 2023.