The World Bank has listed the naira as one of the worst-performing currencies in sub-Sahara Africa in 2024.
According to the latest World Bank Africa’s Pulse report, the naira which continues to slide is struggling at the basement with the Ethiopian Birr, and South Sudanese Pound.
Dwindling dollar inflow and increase demands continue to put pressure on the naira as of August, the Naira lost about 43 percent.
“By August 2024, the Ethiopian birr, Nigerian naira, and South Sudanese pound were among the worst performers in the region,” the report said.
“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 is currently exchanging at N1,700 per dollar according to data from Bureau de Change (BDC) operators.
This represents a 0.29% drop from its previous rate of N1,695/$1 recorded on October 11, despite a surge in crude oil prices, which have surpassed $80 per barrel.
