By Abidemi Samuel
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The Nigerian naira experienced a slight depreciation against the United States dollar at both official and parallel foreign exchange markets on the eve of the New Year. According to data from the FMDQ, the naira closed at N1,538.55 per dollar on Monday, representing a loss of N4.55 from the N1,534 traded on Friday.
Similarly, at the black market, the naira dipped marginally to N1,662 per dollar on Monday, down from N1,660 traded the previous day. This depreciation comes as the year 2024 draws to a close, with forecasts suggesting further declines in the value of the naira in the coming year.
A recent report by Afrinvest projected that the naira may depreciate to N1,804 per dollar in 2025, citing various economic factors that are likely to impact the currency’s value. Meanwhile, the Centre for the Promotion of Private Enterprise (CPPE) noted that Nigeria’s inflation rate currently stands at 34.60 percent as of November, but is expected to moderate in the new year.
The depreciation of the naira against the dollar may have significant implications for Nigeria’s economy, particularly in terms of imported goods and services. As the country enters the new year, it remains to be seen how the government and economic policymakers will address the challenges facing the naira and the broader economy.
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