The Nigerian Naira is among the worst-performing currencies in sub-Sahara Africa at the end of August 2024.
The World Bank disclosed this in its latest edition of
Africa’s Pulse report.
Report showed that the Naira is at par with the Ethiopian
Birr, and South Sudanese Pound in terms of decline in the region.
The report blamed the continued increase in the demand for
dollars and limited dollar inflow for Naira depreciation in the last months.
According to the report, the Naira lost about 43 percent as
of August.
“By August 2024, the Ethiopian birr, Nigerian naira, and
South Sudanese pound were among the worst performers in the region.
“The Nigerian naira continued losing value, with a
year-to-date depreciation of about 43 percent as of end-August.
“Surges in demand for US dollars in the parallel market,
driven by financial institutions, money managers, and non-financial end-users,
combined with limited dollar inflows and slow foreign exchange disbursements to
currency exchange bureaus by the central bank explain the weakening of the
naira,” it said.
The Naira weakened significantly on Tuesday to N1658.97 per
dollar from N1552.92 exchanged on Monday.
In the past months, the Naira has continued to fluctuate
against the dollar in the foreign exchange market despite interventions by the
Central Bank of Nigeria.
Nigeria’s inflation rose to 32.70 percent in September from
32.15 percent recorded in August 2024.
Despite this, the World Bank’s Economic growth in Nigeria is
projected at 3.3 percent in 2024 and 3.6 percent in 2025–26.
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