The Nigerian Naira ranked among the worst-performing currencies in sub-Saharan Africa by the end of August 2024, according to the World Bank’s latest Africa’s Pulse report.
The report revealed that the Naira’s decline was comparable to that of the Ethiopian Birr and South Sudanese Pound within the region. It attributed the Naira’s depreciation in recent months to a surge in demand for dollars coupled with limited dollar inflows.
As of August, the Naira had lost approximately 43 percent of its value, the report stated.
“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.
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According to Parallel Facts, the Naira saw a sharp decline on Monday, falling to N1,700 per dollar in the parallel market.
In recent months, the Naira has experienced ongoing fluctuations against the dollar, despite efforts by the Central Bank of Nigeria to stabilize the currency.
Meanwhile, Nigeria’s inflation rate rose to 32.70 percent in September, up from 32.15 percent in August 2024.
Despite these challenges, the World Bank projects Nigeria’s economic growth at 3.3 percent for 2024, with further growth of 3.6 percent expected in 2025–26.
(Daily Post)
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