The naira drastically loses value
The local currency of the Federal Republic of Nigeria: naira, is now the third worst-performing currency in the world after losing about 70% of its value against the dollar. According to the data revealed by Bloomberg, the naira fell by 4.3%, the most it has fallen since Oct. 15th. This fall followed a 72% decrease in dollar liquidity to $81 million, the lowest it has been in more than a month.
The Naira weakened the most in about two weeks to a record low, after a drop in dollar liquidity in the foreign exchange market. In the foreign exchange market, liquidity has remained low as the West African nation ranks building its reserves, which is at the highest it has ever been in two years at $39.4 billion on 24th October.
Nigeria, Africa’s largest crude producer, has battled with stabilising its currency since it was allowed to trade freely against the dollar in June last year. The cause of this challenge can be traced to the country’s failure to increase its crude oil production which has fallen to the lowest level it has been since 1992.
Just last week, Wale Edun, the Finance Minister complained about the country’s low oil production level. He mentioned that increasing production levels is still the surest way to strengthen Nigeria’s FX position and make the Naira strong.
Join Our Social Media Channels:
WhatsApp: NaijaEyes
Facebook: NaijaEyes
Twitter: NaijaEyes
Instagram: NaijaEyes
TikTok: NaijaEyes
