Naira falls to N1,656 at I&E Window amid volatility, but hope for recovery grows as U.S Fed decision looms 

This marks a 7.12% decline from N1639.20 on September 13, 2024, despite news that inflation had slowed by 1.25%, dropping from 33.40% in July to 32.15% in August 2024.

The naira’s recent performance has been marked by fluctuations, hovering around the 1,600 level due to volatility.

However, there is cautious optimism that the naira may strengthen if the US Federal Reserve cuts interest rates on September 18, 2024, which could weaken the dollar.

Key Data Points 

Closing Exchange Rate: The naira closed at N1656.49 on September 17, 2024, down 7.12% from the previous closing rate of N1639.20 on September 13, 2024.

Intra-day Highs and Lows: During the trading session, the naira hit a high of N1,665.00/$1 and a low of N1,565.00/$1 before closing at N1656.49.

Market Turnover: Tuesday’s market turnover reached $100.39 million. In August, total market turnover was $3.25 billion, down from $4.34 billion in July—a $1.08 billion decrease.

Parallel Market Rates 

In the parallel market, exchange rates ranged between N1,643.86 and N1,639.07, remaining close to the official I&E window rate, as the Naira tried to find balance against the dollar.

Since mid-July, the naira has fluctuated within the N1,600 range, briefly appreciating to N1639.20 by September 13, only to fall further to N1656.49 by September 17.

During Tuesday’s session, the naira moved between a high of N1,665.00 and a low of N1,565.00 before closing above N1,600 again.

Year-to-date, the naira has depreciated by about 76%, driven by inflationary pressures and rising demand for the dollar.

Meanwhile, Nigeria’s external reserves increased from $36.305 billion on August 30 to $36.730 billion by September 10.

Nigeria’s headline inflation eased to 32.15% in August 2024, down from 33.40% in July.

The Nigerian National Petroleum Corporation Limited (NNPCL) announced that petrol sales in naira by the Dangote Refinery will begin on October 1, 2024.

The Nigerian National Petroleum Corporation Limited (NNPCL) announced that petrol sales in naira by the Dangote Refinery will begin on October 1, 2024.

If the US Federal Reserve cuts interest rates as expected on September 18, 2024, the weakening dollar could provide an opportunity for the naira to appreciate.