As the Nigerian Currency, the Naira weaken by almost 4o% against the US Dollar since it’s devaluation in June , the World Bank has listed the Naira as among the worst performing currency in the continent.
This was a report titled ” Africa Pulse”; An analyses of issues shaping Africa’s economic future (October 2023 Vol 23)
It stated, “ that the Nigerian naira and the Angolan kwanza are among the worst performing currencies in the region: as it witnesses a 40% depreciation.
“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.”
Among other currencies listed in 2023 in Africa are South Sudan (33 per cent), Burundi (27 per cent), the Democratic Republic of Congo (18 per cent), Kenya (16 per cent), Zambia (12 per cent), Ghana (12 per cent), and Rwanda (11 per cent).
It noted that parallel exchange market rates are also compounding inflationary problems for some countries in the African region.
The Central Bank of Nigeria (CBN) in June 2023
directed Deposit Money Banks to remove the rate cap on the naira at the official Investors and Exporters’ window of the foreign exchange market, and allow the free float of the naira against the dollar and other global currencies. Since then, the naira had fallen from N473.83/$ to around N800/$ officially
