Naira Tops World Bank's List of Worst Performing African Currencies in 2023
- The Nigerian currency, the Naira, has been ranked as one of Africa's worst-performing currencies
- In a new report, World Bank has also provided reasons why the Naira is performing poorly against the dollar.
- The Central Bank of Nigeria's decision to stop subsidising the Naira at the official market in an attempt to unify exchange rates has led to the Naira hitting N1,000
World Bank has ranked the Naira among the worst-performing African currencies. The organisation also provided insights on Nigeria's economic challenges.
The global bank disclosed this in its report titled, 'Africa's Pulse: An analysis of issues shaping Africa's economic future (October 2023 | Volume 28), obtained by Legit.ng.
Source: Getty Images
World Bank noted that Naira has weakened by nearly 40 per cent against the US dollar since a mid-June devaluation, Punch reports.
Part of the report reads.
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“So far this year, the Nigerian naira and the Angolan kwanza are among the worst performing currencies in the region: these currencies have posted a year-to-date depreciation of nearly 40 per cent.
“The weakening of the naira was triggered by the central bank’s decision to remove trading restrictions on the official market.
"For the kwanza, it was the decision of the central bank to stop defending the currency as a result of low oil prices and greater debt payments.”
World Bank list of worst African currencies
World Bank in the report further revealed African currencies with Significant losses in 2023.
- Nigeria - 40%
- South Sudan - 33%
- Burundi - 27%
- Democratic Republic of Congo - 18%
- Kenya - 16%
- Zambia - 12%
- Ghana - 12%
- Rwanda - 11%
Furthermore, the World Bank highlighted the widening difference between the Naira's parallel and official exchange rates.
The bank stated this was the case from March 2020 until June 2023.
Expert reacts
Speaking on the naira's continue depreciation, Chika Mbonu an ex top banker explained that the challenge is always forex supply.
He said:
"No matter how the CBN tries to helped the naira recover at the official market, the black market will keep going up unless there is a supply plug to block that.
The fact that we don't have a supply plug, CBN will only get applause from IMF for the forex reforms but the premuim between the black, offical market keeps widening.
"But all this can change if Nigeria can get oil production right and sell all for more dollars to pump into the forex market, all this will go away."
Pastor Adeboye predicts Naira's glorious days will return
In an earlier report by Legit.ng, the General Overseer of the Redeemed Christian Church of God, Pastor Enoch Adeboye, predicted that the Naira would bounce back against the dollar.
Adeboye gave this prediction during his church's monthly Thanksgiving service with the theme; 'Uncommon Miracles' on Sunday, September 3, 2023.
He told his congregation not to worry, assuring them that the Naira's glorious days would return.
Source: Legit.ng
