Why Naira is One of Africa’s Worst-Performing Currencies
The Nigerian Naira has experienced a significant depreciation, losing about 43% of its value and being listed among the worst-performing currencies in Africa, according to a recent report by the World Bank.
This steep decline is attributed to various factors, including persistent inflation, a struggling economy, and the high demand for foreign exchange in Nigeria.
The depreciation of the Naira has had severe consequences for the country’s economy, leading to increased costs for imported goods and services, contributing further to inflation, and reducing the purchasing power of Nigerians.
The currency’s poor performance is also compounded by external factors such as global economic uncertainties and a sharp decline in oil revenue, which is a major source of Nigeria’s foreign exchange.
The World Bank’s report highlights the challenges that Nigeria faces in stabilizing its currency and the broader economic issues at play.
It also urges the Nigerian government to implement reforms that could boost economic growth, increase foreign investment, and address the ongoing currency crisis.