The naira hit an all-time low of N1,689.88 per dollar on Tuesday in the official foreign exchange (FX) market, following a dramatic 77.42 per cent drop in daily FX turnover.

After the close of trading on Tuesday, the exchange rate for the dollar stood at N1,689.88, representing a 0.5 per cent depreciation compared to the N1,681.42 recorded the previous day, as reported by the FMDQ Securities Exchange Limited.

The sharp decline in turnover saw the daily FX market activity fall to just $106.44 million, down from $471.50 million on Monday. The data from the FMDQ also indicated that the intraday highs and lows were steady at N1,695 and N1,631 per dollar, respectively, reflecting a range of fluctuations within the market.

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On the parallel market, often referred to as the black market, the naira held steady at N1,740 per dollar, maintaining its value despite the volatility in the official market.

According to the Central Bank of Nigeria’s (CBN) business expectations survey, firms anticipate further depreciation of the naira in November and over the next three months. However, there is a more optimistic outlook for the currency’s value over the next six months, with expectations for an eventual appreciation.

In a more positive economic indicator, Nigeria’s external reserves have increased to $40.08 billion as of November 7, 2024. This marks a significant 21.4 per cent rise from the $33.02 billion level recorded at the beginning of the year, as per the latest data from the CBN.

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By Hope Moses-Ashike • November 13, 2024

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.

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