The Nigerian naira experienced a brief recovery against the US dollar, closing at N1,666.72 per dollar on November 1, 2024, marking a 0.5% increase from the previous rate of N1,675.49 per dollar. However, this positive trend was short-lived, as the naira depreciated again, closing at N1,676.90 per dollar on November 5, 2024 [fc184bd0]. Forex transactions also saw a decline, dropping to $79.47 million, down 15.7% from $94.22 million [fc184bd0].
In the black market, the naira improved slightly, trading at N1,720 per dollar, which is an appreciation of N10 from the previous rate [fc184bd0]. Despite this, the naira weakened against other major currencies; it fell to N2,160.63 per British pound from N2,157.25, and decreased to N1,816.40 per euro from N1,814.79 [fc184bd0].
This recent fluctuation follows a period of volatility where the naira had previously depreciated significantly, falling to N1,670.65 per dollar on October 29, 2024, after a sharp decrease in forex transactions [3e7bd5ad]. The naira had also seen a low of N1,658.97 on October 15, 2024, before a brief recovery period [5033cd4d].
The Central Bank of Nigeria (CBN) had attempted to stabilize the currency with a $60 million injection into the market and a recent interest rate hike of 0.5% to combat inflation [5033cd4d][29a7e20e]. Analysts, including Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry (LCCI), have expressed optimism for further recovery, advocating for a review of the free-floating exchange rate policy to enhance stability [fc184bd0].
In the cryptocurrency market, Bitcoin has seen a rise of 3.5%, reaching $62,735.55, while Ripple has experienced a slight decline of 0.2% to $0.5381, reflecting the dynamic nature of digital currencies amid the fluctuating economic landscape [b12e9139].