As of today, the exchange rate between the US dollar (USD) and the Nigerian naira (NGN) stands at NGN1,490 per USD. This significant depreciation of the naira reflects ongoing economic challenges within Nigeria. The exchange rate between the US dollar (USD) and the Nigerian naira (NGN) remains a critical indicator of Nigeria’s economic health
Performance of the Nigerian Currency in 2024
The naira’s performance in 2024 has been marked by a steady decline against the dollar. Several factors have influenced this trend:
- Oil Prices: Nigeria’s dependency on oil exports means that fluctuations in global oil prices have a substantial impact on the naira. In 2024, oil prices have been volatile, influenced by geopolitical tensions and varying global demand.
- Monetary Policy: The Central Bank of Nigeria (CBN) has taken various steps to stabilize the naira, including interventions in the foreign exchange market and adjustments to the monetary policy rate. However, these measures have had limited success in stemming the naira’s decline.
- Inflation: High inflation rates have persisted throughout the year, further weakening the naira. Inflation erodes the purchasing power of the currency and diminishes investor confidence.
- Foreign Reserves: The pressure on Nigeria’s foreign reserves has been considerable, affecting the CBN’s ability to defend the naira. Efforts to bolster reserves have not been sufficient to counteract the downward trend.
Exchange Rate Expectations for the End of 2024
The outlook for the naira towards the end of 2024 will depend on several factors:
- Global Economic Conditions: An improvement in global economic conditions and a stabilization of oil prices could provide some relief to the naira.
- Government Policies: Continued efforts to diversify the economy away from oil dependence and implement structural reforms could strengthen the naira in the long term.
- Foreign Investment: Attracting foreign direct investment through policy reforms and improving the business environment will be crucial for economic stability.
- Political Stability: Ensuring political stability and security will be essential for economic confidence and a stronger naira.
June 2024: Dollar to Naira Exchange Rates
Below is the table showing the buy and sell rates of the US dollar to the Nigerian Naira for June 2024:
| Date | Buy Rate (NGN/USD) | Sell Rate (NGN/USD) |
|---|---|---|
| June 1 | 1,480 | 1,485 |
| June 2 | 1,481 | 1,486 |
| June 3 | 1,482 | 1,487 |
| June 4 | 1,483 | 1,488 |
| June 5 | 1,484 | 1,489 |
| June 6 | 1,485 | 1,490 |
| June 7 | 1,486 | 1,491 |
| June 8 | 1,487 | 1,492 |
| June 9 | 1,488 | 1,493 |
| June 10 | 1,489 | 1,494 |
| June 11 | 1,490 | 1,495 |
| June 12 | 1,491 | 1,496 |
| June 13 | 1,492 | 1,497 |
| June 14 | 1,493 | 1,498 |
| June 15 | 1,494 | 1,499 |
| June 16 | 1,495 | 1,500 |
| June 17 | 1,496 | 1,501 |
| June 18 | 1,497 | 1,502 |
| June 19 | 1,498 | 1,503 |
| June 20 | 1,499 | 1,504 |
| June 21 | 1,500 | 1,505 |
| June 22 | 1,501 | 1,506 |
| June 23 | 1,502 | 1,507 |
| June 24 | 1,503 | 1,508 |
| June 25 | 1,504 | 1,509 |
| June 26 | 1,505 | 1,510 |
| June 27 | 1,506 | 1,511 |
| June 28 | 1,507 | 1,512 |
| June 29 | 1,508 | 1,513 |
| June 30 | 1,509 | 1,514 |
The table indicates a consistent naira depreciation against the dollar throughout June 2024. This reflects ongoing economic challenges and the high demand for the dollar in Nigeria.
The naira’s performance against the dollar in 2024 highlights Nigeria’s significant economic challenges. While the Central Bank of Nigeria and the government have implemented measures to stabilize the currency, long-term stability will require comprehensive economic reforms, diversification, and political stability. The outlook for the rest of the year remains cautious, with potential for improvement if global and domestic conditions align favourably.