Naira among worst performing currencies in Africa – World Bank

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As of the end of August 2024, the Nigerian Naira is one among the currencies with the worst performance in sub-Saharan Africa.

This was revealed by the World Bank in its most recent Africa’s Pulse study.

According to the report, the Naira’s drop in the region is comparable to that of the South Sudanese Pound and Ethiopian Birr.

The report attributed the recent depreciation of the Naira to the restricted influx of dollars and the ongoing rise in demand for dollars.

The article states that as of August, the Naira had lost almost 43%.

“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.

According to ZINGTIE, the value of the Naira dropped sharply on Tuesday, from N1552.92 to N1658.97 per dollar on Monday.

The Naira’s volatility against the dollar in the foreign currency market during the past few months has persisted despite interventions by the Central Bank of Nigeria.

Inflation in Nigeria increased from 32.15 percent in August 2024 to 32.70 percent in September.

In spite of this, the World Bank projects that Nigeria’s economy would increase by 3.3% in 2024 and 3.6% in 2025–2026.

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