Nigerian currency among worst performing in Africa – World Bank

The World Bank has put the Nigerian Naira among the worst-performing currencies in sub-Sahara Africa at the end of August 2024.

This was revealed in its latest edition of Africa’s Pulse report.

According to the report, 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% 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% 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% in September from 32.15% recorded in August 2024.

Despite this, the World Bank’s Economic growth in Nigeria is projected at 3.3% in 2024 and 3.6% in 2025–26.