Nigeria’s Naira Slips as Libyan and Ghanaian Currencies Rank Among Africa’s Top 10
By Okafor Joseph Afam, August 27, 2024
The Nigerian naira has continued its downward trajectory in the parallel FX market, losing ground against major foreign currencies. The naira depreciated by N5 against the US dollar, now trading at N1,620/$1, down from the previous rate of N1,615/$1. Similarly, it weakened against the British pound, dropping N10 to trade at N2,090/£1, compared to the previous day’s rate of N2,080/£1. The Canadian dollar also gained significantly against the naira, rising to N1,250/CA$1 from N1,200/CA$1, marking a N50 loss for the Nigerian currency.
The naira’s struggles began at the start of the week, losing N26 against the US dollar and trading at N1,596/$1, as reported by the Nigerian Autonomous Foreign Exchange Market (NAFEM). This was a sharp decline from the N1,570/$1 rate recorded on Friday, August 23, 2024. Throughout the day’s trading, the naira fluctuated, hitting a high of N1,610/$1 and a low of N1,500/$1, with a tight spread of N110/$1.
Despite Nigeria’s status as an oil-rich nation, the naira continues to suffer due to severe foreign currency shortages. The currency also fell by N15 against the Euro, trading at ₦1,785/€1, down from ₦1,770/€1 the previous day. Years of economic mismanagement have exacerbated the country’s foreign exchange crisis, further depleting reserves and worsening the dollar shortage.
In a recent report by Business Insider Africa, published on August 23, 2024, the 10 strongest currencies in Africa for August were listed using the Forbes Currency Converter. Meanwhile, a June 2024 Bloomberg report named the naira the worst-performing currency globally in the first half of the year, citing devaluation, insufficient dollar liquidity, and market volatility as major challenges for the Central Bank of Nigeria’s efforts to stabilize the currency.
Top 10 Strongest African Currencies in August 2024:
- Tunisia, Tunisian Dinar (TND), 3.05/$1
- Libya, Libyan Dinar (LYD), 4.78/$1
- Morocco, Moroccan Dirham (MAD), 9.64/$1
- Botswana, Botswana Pula (BWP), 13.36/$1
- Seychelles, Seychellois Rupee (SCR), 13.69/$1
- Eritrea, Eritrean Nakfa (ERN), 15/$1
- Ghana, Ghanaian Cedis (GHC), 15.65/$1
- South Africa, South African Rand (ZAR), 17.92/$1
- Eswatini, Swazi Lilangeni (SLZ), 17.94/$1
- Lesotho, Lesotho Loti (LSL), 17.95/$1
