Naira Ranked Among World’s Worst Performing Currencies
Nigeria’s currency, the naira, has been ranked among the 10 worst-performing currencies globally, according to a recent Bloomberg report.
The report identified five African currencies, including the Zambian kwacha, Angolan kwanza, and the naira, among the poorest performers. Several factors, such as economic challenges, unstable commodity prices, inflationary pressures, and limited dollar liquidity, contributed to the decline of these currencies.
Keonethebe Bosigo, a portfolio manager at Mazi Asset Management, emphasized that poor currency management and economic imbalances have played a significant role. He noted that the naira’s overvaluation resulted from not allowing it to adjust, ultimately leading to a loss of confidence.
Irmgard Erasmus, an economist at Oxford Economics, highlighted liquidity and dollar supply issues affecting the naira. Despite efforts to liberalize Nigeria’s current account after President Tinubu’s election in 2023, the currency remains under pressure. Erasmus stated that the naira should ideally be trading around N1,100 per dollar but currently faces an uncertain future without major policy reforms and improved dollar supply.
