The naira has been rated as the worst-performing currency globally in the first six months of 2024, according to a report by Bloomberg on Friday. Factors such as devaluation, insufficient dollar liquidity, and market volatility have hindered efforts by the Central Bank of Nigeria to strengthen the currency.
The report noted that Egypt’s pound and Ghana’s cedi are also among the worst-performing currencies in the first half of the year.
Tracking data from FMDQ, Bloomberg reported that the naira weakened for a ninth straight day to 1,510 per dollar by the close on Thursday. This losing streak is the longest since July 2017, bringing the naira’s decline to 40 percent since the start of the year.
“The naira’s performance is the worst among global currencies tracked by Bloomberg, except for the Lebanese pound, which is also struggling due to an economic crisis and dollarisation,” the report stated.
Providing an update on the currency, Samir Gadio, Head of Africa Strategy at Standard Chartered Bank Plc, said in an email, “While the naira is undervalued and has seen significant adjustment, the supply of dollars needs to improve for the currency to be supported. Portfolio inflows have yet to pick up, even amid still-attractive local rates. What will matter going forward is whether it can stabilise on improving foreign exchange inflows and perhaps see some appreciation.”
