See Exchange Rate Tonight As Naira Falls Massively At Black Market

Naira fell below a key support line, as the local currency dropped below the N1,600/$ support level in the black market.

Market fundamentals indicate renewed demand pressure and an expanding supply gap, leading to another round of naira depreciation.

The naira’s value fell from N1,625 per dollar last weekend to N1,635/$ yesterday.

The local currency is under severe pressure this month, struggling to maintain the critical N1,500 support level, according to market indicators, despite slight improvements in some macroeconomic conditions in the Nigerian foreign exchange market.

Fundamentals suggest that if the local currency cannot maintain its current levels, it may decline towards N1,800/$.

Even ardent supporters of free market economics may now doubt that the naira will strengthen to its March highs this quarter.

The Central Bank of Nigeria plans to issue treasury bills valued at N2.2 trillion in the fourth quarter of 2024.

This substantial issuance, a direct response to the nation’s current economic difficulties, aims to stabilize the naira while managing liquidity in the financial market.

In response to soaring inflation, the Nigerian apex bank has adopted a tight monetary policy, raising interest rates on treasury notes to provide more incentives in the Nigerian capital market.

The interest rates on 364-day bills increased from approximately 15–18% at the end of 2023 to 21.49% in the first half of 2024.