Naira Ranked Among 10 Worst Performing Currencies Globally Amid Economic Struggles

Nigeria’s currency, the naira, has been ranked among the 10 worst-performing currencies worldwide, according to a report by Bloomberg.

Alongside currencies like Zambia’s kwacha and Angola’s kwanza, the naira’s performance has been severely impacted by ongoing economic challenges, inflationary pressures, and a lack of dollar liquidity.

The currency’s steep decline has worsened Nigeria’s already fragile economic situation, sparking concerns about the country’s economic future.

 Experts have attributed the naira’s sharp decline to poor currency management, unstable oil prices, and imbalances in Nigeria’s economic structure.

Keonethebe Bosigo, portfolio manager at Mazi Asset Management, stated that “the real issue lies in poor currency management and economic imbalances,” highlighting how Nigeria’s failure to let the naira adjust led to overvaluation and a loss of confidence in the currency.

Irmgard Erasmus from Oxford Economics echoed this, adding that liquidity shortages and a weak dollar supply have compounded the situation.

 While there is some hope that improved dollar liquidity could aid in the naira’s recovery, the outlook remains uncertain without significant policy reforms.

“The naira remains undervalued due to ongoing issues around liquidity,”

Erasmus explained, suggesting that the currency should be trading closer to N1,100 per dollar but is currently far worse off at N1,544/$.

Without immediate governmental action, the future of the naira remains bleak, leaving many Nigerians in fear of deeper economic struggles.