The naira resumed its decline against the U.S. dollar, closing at N1,660.49 in the official Investors and Exporters (I&E) window.
This depreciation coincides with data from the National Bureau of Statistics (NBS), confirming that crude oil prices exceeded the N1,000 threshold in September 2024.
Despite the naira’s 0.05% drop, market turnover surged to $330.18 million—a significant jump from the $177.10 million recorded the previous trading day.
Key Data Points
Closing Exchange Rate: On October 17, 2024, the naira concluded the trading day at N1,660.49 per dollar, representing a slight drop from the prior day’s rate of N1,659.69.
Intra-Day Fluctuations: The currency experienced considerable swings throughout the session, peaking at N1,670.00 and bottoming out at N1,540.00, before settling at N1,660.49.
Market Turnover: Market activity intensified, with total traded volumes in the I&E window climbing to $330.18 million, compared to $177.10 million the day before. For perspective, the total market turnover for September stood at $3.3 billion.
Parallel Market Rates: In the parallel market, the naira opened at N1,634.56 per dollar, fluctuating between highs of N1,637.97 and lows of N1,633.59 before closing marginally higher at N1,634.27.
Market Trends
The naira has experienced persistent volatility throughout 2024, losing more than half of its value since the start of the year.
It opened in January at N907.11 per dollar and crossed the N1,500 threshold by October. The first quarter saw the naira hit a historic low of N1,616.53 per dollar in February.
Although March offered a fleeting recovery, with the exchange rate stabilizing around N1,303, this rebound quickly unravelled. By mid-April, the currency fell below N1,100, marking another milestone at N1,002.
The naira’s depreciation accelerated over subsequent months, closing September at N1,668.97. Meanwhile, October has only deepened the volatility, with the naira struggling to maintain stability.
What to Know
NBS data for September highlighted that the price of Premium Motor Spirit (PMS), commonly known as petrol, surged past the N1,000 mark, reflecting a 24.08% increase from August.
On average, petrol prices stood at N1,030.46 in September, a staggering 64.55% increase compared to the N626.21 recorded in the same period in 2023.
What to Expect
- Despite the gloomy economic indicators, analysts suggest there could still be a path to stabilization for the naira.
- A mix of favourable policy adjustments and global developments—such as potential dollar weakening—might offer some opportunity.
- As the year draws to a close, the naira’s trajectory will depend on both domestic reforms and external factors aligning to offer some respite in the turbulent exchange market.
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