LIVE UPDATES
The naira has been identified as the worst-performing currency globally in the first half of 2024.
Bloomberg's report highlighted challenges such as devaluation, inadequate dollar supply, and market instability that have impeded the Central Bank of Nigeria's efforts to bolster the currency.
Alongside the naira, Egypt’s pound and Ghana’s cedi also experienced significant depreciation in the first six months of the year.
According to FMDQ data tracked by Bloomberg, the naira declined for nine consecutive days, reaching 1,510 per dollar by the end of Thursday.
This losing streak is the longest since July 2017, resulting in a 40% decline since the beginning of the year.
The naira's performance ranks as the worst among global currencies monitored by Bloomberg, except for Lebanon's pound, which is grappling with an economic crisis and dollarization.
Head of Africa Strategy at Standard Chartered Bank Plc, Samir Gadio, emphasized the need for improved dollar supply to support the undervalued naira, despite attractive local rates failing to attract significant portfolio inflows.
Looking ahead, the focus will be on whether the currency can stabilize through increased foreign exchange inflows and potential appreciation.
PwC's latest economic report on Nigeria revealed a 67.8% depreciation of the naira against the dollar from an average of N461.1 in May 2023 to N1,433.80 in May 2024.
This depreciation occurred despite the CBN's foreign exchange market reforms aimed at price discovery and liquidity attraction.
This contrasts with the naira's previous status as the best-performing currency in the world in March, a position that has since been reversed.
