"No More N750/$:" Naira Weakens Against US Dollar, Nears FG’s Projected Exchange Rate For 2024
- The Nigerian currency, the naira, lost about N15.74 on Friday, January 12, 2023, to close at N890.54 per dollar
- The current exchange rate is close to the projected benchmark by the Nigerian government in the 2024 budget
- The federal government projected N750 per dollar in the budget, which was later raised to N800/$ by the National Assembly
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
The Nigerian currency’s depreciation on Friday, January 12, 2024, is close to the expected benchmark by the Nigerian government for the 2024 budget.
The federal government disclosed on Thursday, January 11, 2024, that the new exchange rate benchmark in the 2024 budget was based on a spot rate meant to avoid uncertainties.
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FG projects N800 per dollar in 2024
The Minister of Budget and National Planning, Atiku Bagudu, disclosed this while answering questions from State House journalists after a meeting with President Bola Tinubu.
The Minister explained that before arriving at the projected FX rate of N750 per dollar in the 2024 budget, the government considered and critically examined the average performance of the naira.
The National Assembly later raised the benchmark exchange rate in the budget to N800 to a dollar.
Bagudu said:
“For budgeting purposes. You don’t use the spot rate of anything. Oil prices can go to 120 today; a shortage or a collision between two ships may block a channel.
According to the Minister, using a reference price that might fluctuate in the future would be unwise.
He stated that President Tinubu honored the National Assembly in allowing it to raise the FX benchmark further, considering how much he respects institutions.
Naira depreciates near FG's target
According to data from NAFEM, the Nigerian currency lost about N15.75, closing at N890.54 per dollar as against the N874.94 it traded the day before.
Experts blamed the naira’s depreciation on several factors, including high demand for hard currency and continued worry about Nigeria’s crude oil production and global uncertainties.
The naira depreciated by 1.8%, closing at N890.54 per dollar at the end of business on Friday, January 12, 2024.
The local currency also depreciated at the parallel market to trade N1,260 to a dollar, while peer-to-peer traders quoted around N1,268.05.
Naira sets another exchange rate record, closes the gap with the black market, The World Bank makes prediction
Legit.ng reported that the Nigerian currency, the naira, set another historical record in the official market on Thursday, December 28, 2023, plunging to the lowest at N1,043.09.
The naira’s depreciation represents 16.35% compared to its previous closing rate, coming a few days before the end of 2023.
The Nigerian currency has remained one of the most volatile currencies in the world in 2023 after the Nigerian government announced a new foreign exchange reform in June this year.
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Source: Legit.ng
