Currency Crisis: Naira Hits Third Worst Spot Worldwide Due To Dollar Shortage

Currency Crisis: Naira Hits Third Worst Spot Worldwide Due To Dollar Shortage

The naira, Nigeria’s official currency, has become the world’s third worst-performing currency, with a sharp 70% depreciation against the dollar this year. Only the Lebanese pound and Ethiopian birr have fared worse..…..CONTINUE READING 

On Monday, the naira dropped another 4.3%, reaching a record low of 1,670.65 per dollar, as per Bloomberg. This decline followed a 72% fall in dollar liquidity, hitting $81 million—the lowest in over a month.

Nigeria’s foreign exchange market continues to suffer from liquidity shortages as the country works to build its reserves, now at $39.4 billion as of October 24, the highest in two years.

Despite being Africa’s top oil producer, Nigeria’s attempts to stabilize the naira have been hampered by reduced oil output, which limits foreign exchange inflows. Finance Minister Wale Edun recently highlighted the need to boost crude production to support Nigeria’s foreign reserves and strengthen the naira.