The Nigerian naira has been the worst-performing African currency this year and has been widely criticized for the country’s tough measures to fix its fiscal situation, including the abolition of fuel subsidies and exchange rate reforms. It has fallen more than 40% against the dollar.
The Angolan Kwanza is followed by the naira, down 39.5% against the US dollar year-to-date (YTD), the Egyptian pound (20.6%), the Congolese franc (18.9%), the Liberian dollar (18.6%) and the Kenyan shilling (15.7%). ), Sierra Leone Leone (13.8%), Ghanaian Cedi (11.9%), Rwandan Franc (11.6%), South African Rand (9.6%).
In mid-August, the Naira fell to 955 Naira/$, fueling fears among investors that the exchange rate could plummet to 1,000 Naira/$.
Since FG/CBN announced the naira float, the naira has been steadily declining. It lost nearly half its value against the US dollar within 10 weeks of its introduction.
To stabilize the naira and curb inflation, the CBN has introduced several measures such as raising the bank cash reserve ratio (CRR), opening the market operation (OMO) and changing the exchange rate regime.
On August 17th, the bank, which is at the apex of a major policy shift, announced a series of operational changes to its currency exchange sector, bowing to pressure from BDC operators with the aim of increasing the efficiency and transparency of the Nigerian foreign exchange market. .
Despite all these moves, the naira continues to fall against the dollar.
The naira fell sharply against the US dollar in the official market on Wednesday, according to market rates posted on the FMDQ website.
In the official market on Tuesday, the naira opened at 769.66 naira/dollar and closed at 775.34 naira/dollar. The rate is down 0.42% from 772.12 naira to the dollar traded in the previous session on Monday.
