- The Nigerian naira has depreciated by 43%, making it one of the weakest currencies in Africa, according to a World Bank report
- The factors behind this huge depreciation have been highlighted to be rising inflation, foreign exchange shortages, and a volatile global market
- There have been calls for urgent reforms from the Central Bank of Nigeria as the economy faces mounting pressure from the depreciating Naira
The Nigerian naira has been identified as one of the worst-performing currencies on the African continent, experiencing a staggering depreciation of 43%, according to a recent report from the World Bank.
This significant decline raises alarms about the state of Nigeria’s economy, which has been grappling with various challenges, including inflation, foreign exchange shortages, and dwindling investor confidence.
This is according to the latest edition of Africa’s Pulse, a report by the World Bank, the Naira's performance in comparison to other African currencies, underscoring a troubling trend that could have far-reaching implications for the nation’s economic stability.
Economists attribute the Naira's depreciation to a combination of factors, including a volatile global market, rising oil prices, and ongoing political and economic uncertainties.
Many Nigerians are now facing increased costs of living as the value of their currency continues to erode.
The Central Bank of Nigeria (CBN) has faced criticism for its handling of the currency crisis, with calls for urgent reforms to stabilize the Naira and restore confidence in the financial system. Analysts suggest that a comprehensive approach, including better management of foreign reserves and investment incentives, is crucial to reversing the Naira's downward trajectory.
The depreciation of the Naira not only affects everyday transactions but also poses challenges for businesses reliant on imports, further straining the economy. As the situation unfolds, citizens and businesses alike are closely monitoring developments and hoping for measures that will provide relief and stability.
5 policies that defined Olayemi Cardoso’s one year in office
Meanwhile, TheRadar reported that Olayemi Cardoso recently marked one year as the governor of the Central Bank of Nigeria (CBN).
The one-year period is characterised by five major policies, which include the bank recapitalisation exercise, clearing of the forex backlog and lifting of forex restriction on 43 items.
