In July 2024, the Nigerian Naira suffered a significant depreciation, plunging to a record low as it weakened by N72.58 against the US dollar. The FMDQ financial market report highlighted an average exchange rate of N1,560.32 per dollar, marking a 4.88% increase from the previous month.
This sharp decline in the Naira’s value has been accompanied by a notable uptick in foreign exchange market activity. Market turnover soared to $7.39 billion, representing a 10.02% month-on-month increase. In Naira terms, the turnover reached N11.48 trillion, up from the N10.01 trillion traded in June.
The Naira’s volatility has become a growing concern, with the currency fluctuating between N1,500.32 and N1,621.12 per dollar throughout July. Despite this turbulence, there was a slight recovery last week, as the Naira appreciated by 62 basis points to N1,570.14 per dollar in the official market.
This period of instability in the Naira’s value underscores the challenges facing Nigeria’s economy, as the country grapples with both domestic and global economic pressures. As the Naira continues to fluctuate, stakeholders are closely monitoring the situation, with hopes that stabilisation efforts will soon yield positive results.
