Jonathan Nwokpor
According to a recent Bloomberg report, the country’s currency, the naira, has declined and is now the poorest-performing currency in the world as of the last month.
The reverse followed the naira’s recent gains when it emerged as the worst-performing currency globally following a fantastic performance last month.
The Central Bank of Nigeria, or CBN, is under more pressure to keep hiking interest rates as a result of the development, according to a study released on Friday.
At 1,466.31 against the US dollar, the local currency dropped to its lowest level since March 20.
The report claims that the decrease is because US currency is scarce locally; on Thursday, there was only $84 million accessible, or half of what there had been the day before.
The governor of the CBN, Yemi Cardoso, has already praised the naira as the world’s best-performing currency as of April 2024.
In March, the naira experienced difficulties, falling as low as N1,600/$1 on the official market and N1800/$1 on the black market.
Nonetheless, the governor of the CBN credited the accomplishment to a number of adjustments to the foreign exchange market and encouraging input from major global investment organisations.
In an interview with Bloomberg, Razia Khan, Chief Economist for Africa and the Middle East at Standard Chartered, estimated that $1.3 billion of naira futures will mature at the end of this month, which may potentially lower market sentiment.
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