Daily Naira Exchange Rate Report

Last updated on August 11th, 2024 at 12:35 am

Again, Naira Dips Slightly Against Dollar, Holding Steady Near Recent Lows

The Nigerian naira continued its recent consolidation on Monday, February 19th, 2024, trading nearly flat against the US dollar in both the official and parallel markets. As of today, February 19, 2024, the exchange rate is approximately N1,493.23 per dollar at the official market and N1,660 per dollar on the parallel market (this may vary depending on your location).

Official Market:

Opening Rate: N1,493.23/$1
Closing Rate: N1,513.50/$1
Change: —

Parallel Market:

Rate: N1,660/$1 (approx.)
Change: —

Here are some of the key points about the current Naira situation:

The devaluation began in June 2023 when the Nigerian government relaxed currency controls. This move was intended to improve access to foreign exchange and boost exports, but it also contributed to the naira’s decline.
Several factors have contributed to the fall, including:
- Global economic uncertainty: The war in Ukraine and rising interest rates in the US have created instability in financial markets, putting downward pressure on currencies in many emerging economies, including Nigeria.
- Limited oil production: Nigeria is a major oil producer, but its output has been below expectations due to theft and pipeline sabotage. This has reduced the country’s foreign exchange earnings.
- High inflation: Inflation in Nigeria has been rising steadily, reaching over 20% in January 2024. This erodes the purchasing power of the naira and discourages foreign investment.
The devaluation has had several negative consequences, including:
- Higher prices for imported goods: As the naira weakens, the cost of imported goods and services rises. This has led to inflation and increased hardship for many Nigerians.
- Reduced purchasing power: The devaluation has also reduced the purchasing power of Nigerians’ incomes, making it more difficult for them to afford basic necessities.
- Business uncertainty: The volatile exchange rate has created uncertainty for businesses, making it difficult for them to plan and invest.

The future of the naira is uncertain. The Nigerian government and central bank are taking steps to address the economic challenges, but it is likely that the naira will remain volatile in the near term.

Strategies for individuals to survive the Naira volatility:

Focus on essentials: Prioritize spending on essential needs like food, shelter, and healthcare. Consider reducing discretionary spending on non-essentials.
Create a budget: Track your income and expenses to understand where your money is going and identify areas where you can cut back.
Build an emergency fund: Having savings to cover unexpected expenses can help you weather financial challenges.
Diversify your income: Consider ways to generate additional income streams to supplement your primary income.
Explore alternative investments: Depending on your risk tolerance, you may want to consider investing in dollar-denominated assets or other inflation-resistant options.
Stay informed: Keep yourself updated on economic news and developments that may impact the naira’s value.

Notes:

This report is based on publicly available information and may not be entirely accurate.
The parallel market rate is indicative only and can vary depending on location and other factors.
This report is intended for informational purposes only and should not be considered financial advice.

Additional Information: