The Nigerian naira began the new year by gaining against the US dollar in the Electronic Foreign Exchange Market System (EFEMS).

The naira opened trading in EFEMS at N1,540 per dollar on Thursday, January 2, 2024, and closed at N1,538.23.

Niara ranked worst-performer in 2024

The local currency was battered in 2024 after the Nigerian government devalued it twice, leading to an over 40% depreciation.

Experts have said that the naira’s depreciation was responsible for high inflation, which hit 34.6% in November 2024, with predictions saying it will rise further.

Recent data shows that the Nigerian currency ranked first among Africa’s worst-performing currencies, ending 2024 at N1,547 per dollar.

Experts make more predictions about the naira

Several predictions suggest that the naira will plunge further in the new year as economic challenges continue.

Meanwhile, data from the FMDQ Exchange shows that traders quoted the dollar at a high of N1, 142.50 per dollar and a low of N1,535, leaving a margin of N7.

However, the naira depreciated in the parallel market on Thursday, January 2, 2025, trading at N1,670 per dollar as against the N1,660 it traded the previous day.

The naira depreciates in the black market

Currency traders said demand for the dollar is rising gradually on the streets, putting pressure on the local currency.

Abbas Yishau, a black market operator, stated that between January 1 and 2, FX traders saw a marginal increase in demand for the US dollar, which led to the N10 depreciation.

“We are seeing rising demands for the dollar as holidaymakers prepare to return. I believe the pressure may continue into the second week as business activities return,” Yishau said.