The Naira fell to N1,659 per Dollar on Wednesday in the official foreign exchange market, the Nigerian Autonomous Foreign Exchange Market (NAFEX).

The local currency fell by 72 Kobo or 0.04 percent to close at N1,659.69/$1 compared with Tuesday’s closing rate of N1,658.97/$1.

The market continued to weigh the recent inflation rise after the National Bureau of Statistics (NBS) on Tuesday said Nigeria’s inflation rose to 32.70 percent in the month of September, the first time after moderating in July and August.

Analysts from the World Bank ranked Nigerian Naira as among the worst-performing currencies in sub-Sahara Africa in 2024, noting that the local currency has lost about 43 percent.

The World Bank, in its latest edition of Africa’s Pulse report, disclosed that the Naira is at the same level with the Ethiopian Birr, and South Sudanese Pound in terms of decline in the region.

The report disclosed that the continued increase in the demand for Dollars and limited Dollar inflow is responsible for Naira depreciation in the last months.

The daily supply of FX as measured by secondary data from FMDQ Securities Exchange Limited indicated that turnover slumped by $40.85 million or 18.7 percent to $177.01 million from $217.86 million.

The Naira weakened its value against the Pound Sterling in the official market by N64.28 to sell at N2,153.90/£1 compared with the preceding session’s N2,089.62/£1.

It followed the same route against the Euro as it depreciated N51.67 to quote the midweek session at N1,800.79/€1 versus the preceding rate of N1,749.12/€1.

In the Parallel market, the Naira weakened on the American currency as it closed at N1,693.32 to the US Dollar, a drop of N29.61 compared to N1,663.71/$1 it closed during the Wednesday trading session.

The Naira also dropped in its value against the British Pound Sterling in the official market by N38.17 to sell at N2,159.12/£1 compared with the preceding session’s N2,120.95/£1 and followed the same pattern against the Euro as it depreciated N31.51 to quote at N1,847.94/€1 versus the previous day’s rate of N1,816.43/€1.

The local currency also depreciated N7.07 to close at N1,204.66 per Canadian Dollar, compared to Tuesday’s N1,197.59 per CAD.

The World Bank has ranked Nigerian Naira as among the worst-performing currencies in sub-Sahara Africa in 2024.

The World Bank, in its latest edition of Africa’s Pulse report, disclosed that the Naira is at the same level with the Ethiopian Birr, and South Sudanese Pound in terms of decline in the region.

The report disclosed that the continued increase in the demand for dollars and limited dollar inflow is responsible for Naira depreciation in the last months.

According to the report, as of August, the Naira lost about 43 percent.

It added that by August 2024, the Ethiopian birr, Nigerian naira, and South Sudanese pound were among the worst performers in the region.

According to the report, the Nigerian naira continued losing value, with a year-to-date depreciation of about 43 percent as of end-August.

It stated that the increase in demand for US dollars in the parallel market, driven by financial institutions, money managers, and non-financial end-users, combined with limited dollar inflows and slow foreign exchange disbursements to currency exchange bureaus by the central bank explain the weakening of the naira.

The Naira plummeted to a new record low, closing at N1,700 per dollar in the parallel market on October 14, 2024, according to data from Bureau de Change (BDC) operators.

This represents a 0.29% drop from its previous rate of N1,695/$1 recorded on October 11, despite a surge in crude oil prices, which have surpassed $80 per barrel.

The Naira weakened to N1,658.97 per Dollar on Tuesday, October 15 at the Nigerian Autonomous Foreign Exchange Market (NAFEX) as the local currency fell by N106.05 or 6.8 percent to close at N1,658.97/$1 compared with Monday’s closing rate of N1,552.92/$1.

The daily supply of FX as measured by secondary data from FMDQ Securities Exchange Limited indicated that turnover slumped by $125.85 million or 36.6 percent to $217.86 million from $343.71 million.

The fall in the local currency came as the National Bureau of Statistics (NBS) released the headline inflation rate for September 2024 which showed that the Consumer Price Index rose to 32.70 percent.

This represents an increase of 0.55 percent from the August 2024 figure of 32.15 percent, after inflation dropped consecutively in the previous two months of July and August.

“In September 2024, the Headline inflation rate was 32.70% relative to the August 2024 headline inflation rate of 32.15%. Looking at the movement, the September 2024 Headline inflation rate showed an increase of 0.55% compared to the August 2024 Headline inflation rate.

“On a year-on-year basis, the Headline inflation rate was 5.98% points higher compared to the rate recorded in September 2023 (26.72%). This shows that the Headline inflation rate (year-onyear basis) increased in September 2024 when compared to the year-on-year in the preceding year (i.e., September 2023).

“Furthermore, on a month-on-month basis, the Headline inflation rate in September 2024 was 2.52%, which was 0.30% higher than the rate recorded in August 2024 (2.22%). This means that in September 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in August 2024,” the NBS report said.

Meanwhile it was a different outcome in the Parallel market, the Naira gained on the American currency as it closed at N1,663.71 to the US Dollar, a rise of N9.84 compared to N1,673.55/$1 it closed during the Wednesday trading session.

The Naira strengthened its value against the Pound Sterling in the official market by N16.41 to sell at N2,120.95/£1 compared with the preceding session’s N2,137.36/£1 and followed the same pattern against the Euro as it appreciated N13.39 to quote at N1,816.43/€1 versus the previous day’s rate of N1,829.82/€1.

The local currency also appreciated N4.07 to close at N1.197.59 per Canadian Dollar, compared to Monday’s N1,201.66 per CAD.