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

The naira weakened to N1,656.49 per dollar at the official exchange window on September 17, 2024, marking a 7.12% drop from N1,639.20 on September 13.

This happened despite Nigeria’s inflation rate easing from 33.40% in July to 32.15% in August. The naira fluctuated between a high of N1,665 and a low of N1,565 during the trading session.

In the parallel market, the naira traded close to official rates, between N1,643.86 and N1,639.07. The market turnover for the day reached $100.39 million, while August’s total turnover dropped by $1.08 billion compared to July.

So far, the naira has depreciated by about 76% this year due to inflation and high demand for dollars.

There is hope that the naira could strengthen if the US Federal Reserve cuts interest rates on September 18, 2024, which might weaken the dollar.

Additionally, Nigeria’s external reserves rose slightly in early September, and the upcoming sale of petrol in naira by Dangote Refinery may improve the economic outlook.