Naira ends September at lowest exchange rate in seven months at parallel market

The Naira concluded September 2024 at N1,541 on the official NAFEM window, showing a modest improvement compared to its performance in July and August 2024.

Conversely, in the parallel market, the Naira reached its lowest level in seven months, closing September at N1,700/$—the weakest rate since February 2024.

At the beginning of September, the official exchange rate on the NAFEM window was N1,585/$, which indicates a 2.77% appreciation by the end of the month.

Data reveals that September’s performance of the Naira was the strongest since June 2024, when it closed at N1,505/$ on the official window. In July, the Naira settled at N1,608/$ in the official market and N1,600/$ in the parallel market. August mirrored this trend, closing at N1,598/$ and N1,616/$ on the official and parallel markets, respectively.

Notably, September recorded the highest daily forex turnover since July 11th, 2024, with daily forex turnover reaching $348 million. On September 26th, 2024, daily forex turnover was $334.05 million.

This increase in trade volume on September 26th coincided with the Central Bank of Nigeria’s (CBN) announcement to sell $20,000 to Bureau De Change (BDCs) at N1,590/$, allowing for a profit margin of 1%.

The CBN’s initiative to sell dollars to BDCs aimed to enhance liquidity in the forex market, especially after FX turnover dipped to just over $100 million the previous day, when the Naira traded at N1667/$ in the official market.