Naira crashes massively by 40 per cent against Dollar in first half of 2024

The Naira depreciated by over 40 percent in the first half of 2024 in the foreign exchange market.

According to FMDQ data, the Naira weakened to N1505.30 per dollar on Friday, down from its closing range of N896.6 to N907.11 on December 29, 2023.

This data indicates ongoing instability of the Naira against other currencies in recent months, despite a period of appreciation that lasted until mid-April 2024.

The Naira reached its highest peak at N1,665.50 in February 2024 and its lowest point in April, standing at N1,140 in the official market and N1,230.61 in the parallel market.

This depreciation is influenced by Central Bank of Nigeria policies, including the unification of the FX market, regulations on International Money Transfer Operators, interventions for Bureau De Change operators, regulations on excess FX for banks, and the recent withdrawal of the Price Verification System Portal for importers.

Despite these policy reforms, the Naira has continued to fluctuate against the Dollar and other currencies.

In April 2024, the Naira was considered the best-performing currency, but it slipped to the worst-performing in May, according to Bloomberg.

As of Friday, the Naira closed at N1505.30 in the official market and N1515 in the parallel market, despite an increase in Nigeria’s external reserves, which stood at $34.07 billion on June 26, 2024.