Naira to End 2024 on New Note as Traders, Currency Dealers Sell Dollar at New Rates

• The Nigerian currency, the naira, closed trading negative on Monday, December 30, 2024
• Information from the Electronic Foreign Exchange Market (EFEMS) shows that the naira depreciated at N1,538.55 per dollar from N1,535
• The development comes despite increased remittances and growing foreign exchange reserves

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

As 2024 draws to a close, several predictions about the naira for the coming year have been made, signalling mixed hope for the local currency.

While the outlook for the naira is majorly positive, others predict a bleak 2025 despite increasing forex reserves, as the Central Bank of Nigeria (CBN) reported.

Naira depreciates against dollar

However, the Nigerian naira depreciated marginally in the Electronic Foreign Exchange Market (EFEMS) on Monday, December 30, 2024.

Data from the FMDQ Exchange shows that the naira closed negative in EFEMS at N1,538.55 per dollar as against the N1,535 it closed on Friday, December 27, 2024mber 27, 2024.

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The naira opened trading at N1,535 per dollar, the same rate as the previous trading day before closing at N1,538.55.

Currency traders quoted the dollar at a high of N1,542 per dollar and a low of N1,533.

Analysts have said the transparency of the EFEMS introduced by the CBN has helped the naira to stabilise against major currencies.

According to the CBN, the development comes amid a reported increase in Nigeria’s forex reserves, which hit $40.88 billion.

External reserves and remittances grow

Nigeria’s reserves have seen an uptick since the country embarked on Eurobond sales, and diaspora remittances have shored up the external reserves.

CBN said the increase in International Money Transfer Operators (IMTOs) has helped increase remittances into the country.

Naira trades at new rate against dollar

Legit.ng earlier reported that on December 23, 2024, the naira gained 01.14% in EFEMS, appreciating by 14 basis points at N1,539.55 per dollar.

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Data showed that CBN's intervention sales propped the naira value as dealers quoted the US dollar at a new rate.

The FX market displayed stability and improved liquidity. Analysts say FX transactions were finalised at a high of N1,545 and a low of N1,532 per dollar.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng