Naira Slumps: Exchange Rate Hits N1,740/USD

Naira Falls to N1,740

The Nigerian naira has taken another hit, depreciating to N1,740 per dollar...

Naira Struggles Continue: Currency Depreciates to N1,740/$, Experts Predict Further Decline

The Nigerian naira's value has taken a hit, sliding to N1,740 per dollar in the parallel market over the weekend, signaling continued pressure on the currency. This depreciation is a concern, especially considering the recent gains made by the naira. However, there's a silver lining - the currency showed slight improvement in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where the Central Bank of Nigeria (CBN) is expected to step in and ease the strain on the exchange rate.

In NAFEM, the indicative rate dropped to N1,600 per dollar from N1,601.2 on Thursday, October 24, marking a modest gain for the naira. This is a positive development, but forecasters predict that the exchange rate may close at around N1,750 per dollar by the end of the month, with the potential to exceed N1,800 per dollar by the end of 2024. The naira's fluctuations are a reflection of the country's economic challenges, including limited access to foreign currency and market speculation.

Takeaways:

Naira's Parallel Market Rate: N1,740 per dollar

NAFEM Indicative Rate: N1,600 per dollar 

Forecasted Year-End Rate: N1,800 per dollar 

CBN Intervention: Expected to alleviate strain on exchange rate 

Keep in mind that these rates are subject to change due to various economic factors, including market dynamics and government policies.

The Nigerian naira has taken another hit, depreciating to N1,740 per dollar in the parallel market over the weekend. This downward trend reflects the ongoing pressures on the currency due to economic challenges. 

However, there's a glimmer of hope - the naira showed slight improvement in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where the Central Bank of Nigeria (CBN) is expected to intervene to alleviate the strain on the exchange rate.

The naira's fluctuating exchange rate continues to be a concern for businesses and individuals alike, highlighting underlying economic uncertainties and liquidity issues in the foreign exchange market.