In August 2024, Nigeria saw a big increase in foreign money exchanges. The total value reached 15.74 trillion naira (about $9.90 billion), according to a report by FMDQ. This was a 33.88% increase from July.
At the same time, more foreign money came into Nigeria. The Central Bank of Nigeria (CBN) reported $585 million in foreign inflows for August.
Despite this growth, the Nigerian currency (naira) is still having problems. On Tuesday, one US dollar cost 1,658 naira in the official market, slightly worse than Monday's rate of 1,659 naira. In the unofficial "black market," the rate was even higher at 1,670 naira per dollar.
The CBN Governor, Olayemi Cardoso, explained that the naira's value can't improve unless Nigeria addresses some basic economic issues. He stressed the need for Nigeria to:
- Increase oil production
- Reduce dependence on imported goods
- Boost non-oil exports
- Diversify the economy
Cardoso also mentioned that Nigeria's foreign reserves increased to $39.07 billion by September 19, 2024. This is enough to cover 8 months of imports for goods and services.
The CBN is working to improve the situation by encouraging more foreign money inflows and warning against market manipulation. However, Cardoso emphasized that lasting improvements depend on fundamental changes in Nigeria's economy.
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