Naira Depreciates Further Against US Dollar in Foreign Exchange Market

• The value of the naira has depreciated further against the US dollar in the foreign exchange markets
• New data from FMDQ Securities shows that the naira fell slightly on Tuesday in the official market
• There is a sign of hope for the naira in the days ahead as the Nigerian government is expected to receive more dollar earnings from oil

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The naira has lost more value against the US dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Data shows that the naira depreciated to N1,549.65/$1 after the close of trading on Tuesday, January 14, 2024.

Tuesday's exchange rate represents a slight depreciation compared to N1,548.89/$1, the naira exchanged in the previous session.

naira to dollar exchange rates

Also, data from the CBN provided a breakdown of the naira's performance against other foreign currencies in the official NAFEM market.

Read also

eNaira surges in Value, hits N18.32 billion as naira trades better than other global currencies

• CFA: N2.40
• Yuan/Renminbi: N211.11
• Danish Krona: N212.53
• Euro: N1586.05
• Yen: N9.80
• Riyal: N412.31
• South African Rand: N81.58
• Swiss Franc: N1687.75
• Pounds Sterling: N1879.64

Naira to dollar unofficial market

In the parallel market, also known as the black market, traders told Legit.ng that the naira depreciated slightly against the US dollar.

Abudulahhi, a BDC trader said:

"The market was a bit calm. We didn't get many forex requests compared to previous days. I sold dollars to my customers at N1,656, a N2 drop from my previous rate of N1,658, while I bought dollars at N1,648, a drop from my previous rate of N1,650.

For the British pound, I sold at N2,055 and bought at N2,020. The euro was sold at N1,680 and bought at N1,660."

Looking ahead

The rise in global crude oil prices is a big boost for the naira, as it means more dollar revenue for the Central Bank of Nigeria to defend the currency.

Read also

Forex traders sell dollar at new exchange rate as Naira depreciates

But this won't be straightforward.

According to Tilewa Adebajo, CEO of The CFG Advisory, fiscal discipline will be required.

He noted that failure by the government to get the policy right could cause the naira to hit close to N2,000 against the dollar.

He said:

"The sincerity and competence of the government in implementing coordinated economic policies will decide whether Nigeria overcomes this reform fatigue or falls further into economic despair.

"Nigeria will need to boost its oil production to fully enjoy the benefits of higher prices."

Nigeria’s foreign reserves rise to 4-year high

Ealier, Legit.ng reported that the CBN has revealed that Nigeria’s foreign reserves have increased to $40.92 billion as of Monday, January 6, 2025

The latest reserves indicated a $606.23 million increase in one month compared to the $40.31 billion recorded as of December 6, 2024.

The January 6 reserves balance was also the highest since December 9, 2021, when it stood at $40.93 billion.

Source: Legit.ng