By: Jeremiah Nutsugah
According to a Bloomberg report on Friday, June 28, the Nigerian Naira has been identified as the worst-performing currency globally in the first half of 2024.
As reported by Bloomberg, data from FMDQ showed that the Naira weakened for the ninth consecutive day, reaching ₦1,510 per dollar by Thursday, June 27. The currencies of Egypt and Ghana also ranked among the worst performers.
This losing streak, the longest since July 2017, has resulted in a 40% decline in the Naira’s value since the start of the year. Years of acute foreign exchange scarcity and instability, caused by lower crude production and a lack of economic diversification, have been the primary causes.
The local unit has lost approximately 70% of its value against the dollar since June 2023. PricewaterhouseCoopers Limited (PwC) reported in its latest economic report on Nigeria that the Naira plummeted by 67.8% against the dollar, from an average of ₦461.1 in May 2023 to ₦1,433.80 in May 2024.
Despite foreign exchange market reforms by the Central Bank of Nigeria aimed at achieving price discovery and attracting liquidity to the market, the depreciation occurred.
Bloomberg’s latest report also noted that the currency experienced volatility between mid-April and May due to an imbalance in demand and supply for the dollar, but the trend halted with an improvement in dollar inflows in June.
