The Nigerian naira experienced a decline in value across various foreign currencies in the parallel FX market. Against the US dollar, the naira shed N5, trading at N1,620/$1, down from the previous rate of N1,615/$1. Similarly, the naira lost N10 against the British Pound, trading at N2,090/£1, compared to the previous day's rate of N2,080/£1. Furthermore, the Canadian dollar appreciated significantly against the naira, with the exchange rate rising to N1,250/CA$1 from N1,200/CA$1, resulting in a N50 loss for the local currency.
The Nigerian currency has suffered a significant decline, starting the week on a low note. On Monday, the Naira shed N26 against the US dollar, trading at N1,596/$1, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM). This represents a drop from the previous rate of N1,570/$1 on Friday, August 23, 2024. The day's trading saw a high of N1,610/$1 and a low of N1,500/$1, with a relatively narrow spread of N110/$1.
The Nigerian naira experienced a decline in value across various foreign currencies in the parallel FX market. Against the US dollar, the naira shed N5, trading at N1,620/$1, down from the previous rate of N1,615/$1. Similarly, the naira lost N10 against the British Pound, trading at N2,090/£1, compared to the previous day's rate of N2,080/£1. Furthermore, the Canadian dollar appreciated significantly against the naira, with the exchange rate rising to N1,250/CA$1 from N1,200/CA$1, resulting in a N50 loss for the local currency.
Despite being an oil-rich nation, Nigeria's economic woes persist, plagued by a severe shortage of foreign currency. The naira's struggles continued as it shed N15 against the Euro, trading at ₦1,785/€1, down from the previous day's rate of ₦1,770/€1. Years of economic mismanagement have taken a toll on the country's foreign exchange reserves, exacerbating the dollar shortage.
Business Insider Africa in a report on Friday, August 23, 2024 listed the 10 strongest currencies in Africa for August, using Forbes Currency Converter.
According to a report by Bloomberg in June 2024, Nigeria’s naira emerged as the worst-performing currency in the world in the first half of the year.
The report noted that devaluation, insufficient dollar liquidity, and market volatility hindered efforts by the Central Bank of Nigeria to strengthen the currency.
Top 10 African countries with the strongest currencies in August 2024:
1. Tunisia, Tunisian Dinar (TND), 3.05/$1
2. Libya, Libyan Dinar (LYD), 4.78/$1
3. Morocco, Moroccan Dirham (MAD), 9.64/$1
4. Botswana, Botswana Pula (BWP), 13.36/$1
5. Seychelles, Seychellois Rupee (SCR), 13.69/$1
6. Eritrea, Eritrean Nakfa (ERN), 15/$1
7. Ghana, Ghanaian Cedis (GHC), 15.65/$1
8. South Africa, South African Rand (ZAR), 17.92/$1
9. Eswatini, Swazi Lilangeni SLZ, 17.94/$1
10. Lesotho, Lesotho Loti LSL, 17.95/$1