On Thursday, the naira showed mixed performance against the dollar in Nigerian FX markets. It improved slightly to N1,543/$1 from N1,592/$1 the previous day but weakened in the black market, trading at N1,610/$1 compared to N1,605/$1 on Tuesday.
Despite some recent improvements, the naira struggles to maintain the N1,500 support level and could face further depreciation if current trends continue.
IMF projections suggest the naira could depreciate by 35% by 2024, potentially reaching N2,081/$. Different forecasts vary, with the FDC predicting N1,580/$1 and the EIU forecasting N2,000/$.
Recent interventions by Nigeria’s apex bank, including a record $815 million sale to companies, have had limited impact, and the CBN’s inconsistent dollar sales have contributed to market instability.
Globally, the US dollar rose slightly from seven-month lows as expectations of an interest rate cut by the Federal Reserve increased.
The dollar’s recent gains and potential rate cuts could further influence global currency markets, impacting the naira’s performance.
The US labor market’s weaker-than-expected data has raised concerns about potential policy easing by the Fed.