The value of the Naira has decreased by 40% compared to the US Dollar during the first half of 2024 at the foreign exchange market.
The FMDQ data showed that the Naira weakened to N1505.30 per
dollar on Friday from between N896.6 and N907.11 it closed on 29th December
2023.
The figure showed that the Naira had continued its
instability against other currencies in the last months despite a streak of
months of appreciation before depreciation set in mid-April 2024.
The Naira reached its highest peak of N1,665.50 in February
2024 and lowest point in April when it stood at 1,140 and N1,230.61 at the
official and parallel foreign exchange markets, respectively.
The development comes on the back of Central Bank or Nigeria
policies, including the unification of the FX market, circular on the operation
of International Money Transfer Operators, Intervention to Bureau De Change
operators, regulation on excess FX to banks, and recently the withdrawal of
Price Verification System Portal for importers.
Despite, the policy reforms by the apex bank, the Naira has
continued fluctuations against the Dollar and other currencies in the foreign
exchange market.
In April 2024, the Naira was adjudged as the best-performing
currency, but slipped to worst-performing in May, according to Bloomberg.
This is as Naira closed at N1505.30 and 1515 at the official
and parallel foreign exchange market, respectively on Friday.
The development comes despite the increase in Nigeria’s
external reserve which stood at $34.07 billion on June 26, 2024.