By Niyi Jacobs
The Nigerian naira has depreciated to N1,562.66 against the US dollar at the official Investor and Exporter (I&E) window, representing a 1.37% decline from the previous close of N1,541.22. This drop is attributed to fluctuating market conditions and a 47% decline in market turnover, which fell from $190.57 million to $100.21 million.
The naira has struggled to maintain a stable value, lingering within the N1,500 range, and has lost approximately 76% of its value year-to-date due to rising inflation and increasing demand for foreign exchange. Despite these challenges, Nigeria’s external reserves have seen a slight improvement, rising from $36.305 billion to $36.730 billion between August 30 and September 10.
A $1.5 billion loan from the World Bank, expected to be approved by September 26, 2024, may have a positive impact on Nigeria’s economy and help bolster the naira. Effective management of the loan could ease economic pressures, reduce inflation, and improve the purchasing power of the naira. Additionally, an increase in foreign exchange reserves could lessen the strain on the naira, stabilizing its value against the dollar.
