More Headache for CBN As Naira Becomes 3rd Worst Performing Currency in the World
- The Nigerian currency, the naira, is now in the top 3 list of the worst-performing currencies in the world
- New data shows that the value of the naira has depreciated significantly against the United States dollar
- There is some good news in the official market, as the naira value improved after Wednesday's trading
The naira, having lost 70% of its value against the dollar, is now the world's third worst-performing currency, following the Lebanese pound and the Ethiopian birr.
According to Bloomberg, the naira earned its new status after it weakened by 4.3%, the most since October 15, to 1,670.65 to the dollar on Monday, October 28.
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Naira struggles against dollar
The federal government has faced challenges in stabilizing its currency since allowing it to trade freely against the dollar in June 2023.
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This struggle largely stems from Nigeria's failure to increase crude oil production, which has dropped to levels last seen in 1992.
Finance Minister Wale Edun expressed concern over the low production rates last week, stating that boosting output is essential to improving the foreign exchange position and strengthening the naira. BusinessDay reports.
Naira value against dollar
Meanwhile, on Wednesday, October 30, in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira depreciated against the dollar.
Data from FMDQ Securities showed that the Nigerian currency closed on Wednesday at N1,631.17/$.
This rate marks a slight 0.04% depreciation from Tuesday's exchange rate of N1,630.45 to the dollar.
In the black market, the naira is exchanged at over N1,730 per US dollar as the festive season approaches, and pressure continues.
Naira depreciates against US dollar
Legit.ng earlier reported that the Nigerian naira extended its free fall against the dollar in the official foreign exchange market.
According to data from the FMDQ Securities Exchange, the naira dropped in value in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to exchange at N1,670.65/$1 on Monday, October 29.
Monday's exchange rate represents a 4.4% or N70.65 depreciation compared with NN1,600/$1.which was traded on Friday last week.
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Source: Legit.ng
