By Anastasia John E.
Exchange rate between the Naira and the dollar ended 2024 at N1,535/$1, marking a 40.9% depreciation, according to data from Nairametrics. This development comes after a year of various foreign exchange policies introduced by the Central Bank of Nigeria (CBN) aimed at addressing forex challenges and stabilizing the Naira.
The APEX Bank introduced several foreign exchange policies in 2024 as the central bank expanded on market-friendly forex policies to attract foreign investors.
For the year, the official exchange rate depreciated by 40.9% from the closing rate of N907.11/$1 in 2023. On the parallel market, the Naira exchanged for N1,660 to the dollar, representing a 26.8% depreciation from N1,215/$1. Despite these fluctuations, the exchange rate mostly remained within the 5-10% range for the year.
The CBN introduced several policies throughout 2024 to address forex challenges. These included the discontinuation of the ±2.5% cap on interbank FX transactions, fines on forex violators, revocation of BDC licenses, and the introduction of new guidelines for BDCs. Additionally, efforts were made to increase forex liquidity through remittance incentives, domestic dollar bond issuances, and new FX trading guidelines.
The Naira’s performance in 2024 reflected the ongoing challenges in achieving forex stability, with further interventions planned to address the Naira’s valuation issues.
Meanwhile, on the parallel market where the exchange rate is sold unofficially, the naira exchanged for N1,660 to the dollar when compared to N1,215/$ according to Nairametrics tracking records. This represents a 26.8% depreciation.
The NFEM rate and the weighted average rates both closed at N1535.8 and N1536.5 respectively.
