13 Views

Naira Is Worst Performing Currency In Africa – Economist Says

Sometimes the worst is not bad enough. Or such is the case for Nigeria’s currency, which nosedived by 30% when the central bank first removed its peg to the dollar on June 20th. The naira is now this year’s poorest-performing currency in Africa.

Internationally, Nigeria’s Naira is only better than the currencies of Venezuela and tiny Suriname.

Yet were the Naira truly free, it would be weaker still.
In fact, the naira’s free float seems to have lasted exactly a day. Since its sharp drop on the first day of its devaluation, the currency has more or less flatlined at about 282 per dollar. This is rather odd given the pent-up demand for dollars after the central bank governor, Godwin Emefiele, restricted the supply in a bid to defend the currency at its old peg of 199 to the dollar.

Many analysts expected it to plummet as low as 350 (inter-bank) when businesses hoovered up a backlog exceeding $4billion.

Bankers say this stability came about after the central bank sold dollars and traders were bullied by it to keep to an unofficial peg. “If you want to sell or buy higher than the managed peg, life will be made difficult,” says the former CEO of a bank.

So why did the central bank ignore its own policy on allowing a float?
According to The Economist, the most plausible explanation is that Emefiele has been kowtowing to President Muhammadu Buhari, who fears a weak currency.

But these sorts of flip-flops hardly reassure foreign investors, whose dollars Nigeria desperately needs to fill a gaping trade deficit. Nor do they encourage Nigerian exporters to repatriate foreign exchange, since they still expect a further fall in the value of the local currency.

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

Singer, Wizkid Gives Health Update, Appreciates Fans For Their Support
Entertainment
38 views
Entertainment
38 views

Singer, Wizkid Gives Health Update, Appreciates Fans For Their Support

Mabel - September 20, 2017

Nigerian singer, Wizkid who a few weeks ago revealed that he’s been battling with an unknown ailment that has prevented him from performing has bounced back. He took to…

Rivers Governor, Nyesom Wike Assigns Portfolios To 20 New Commissioners… [See Full List] 
Politics
29 views
Politics
29 views

Rivers Governor, Nyesom Wike Assigns Portfolios To 20 New Commissioners… [See Full List] 

MT - September 20, 2017

The Rivers State Governor, Nyesom Ezenwo Wike has on Wednesday, assigned portfolios to Cabinet Commissioners in the state. According to a statement posted on Facebook the newly…

Rochas Okorocha Has This To Say On IPOB, Biafra: “Hausas Can Win Election Without Igbos”
Politics
44 views
Politics
44 views

Rochas Okorocha Has This To Say On IPOB, Biafra: “Hausas Can Win Election Without Igbos”

MT - September 20, 2017

Rochas Okorocha has revealed that Igbos play the worst politics in Nigeria saying that Hausas can win election without them. Imo State Governor, Rochas Okorocha has accused…

Meet Endurance Otobi, The Blind Shoe Cobbler Who Is Defying All Odds
Business
35 views
Business
35 views

Meet Endurance Otobi, The Blind Shoe Cobbler Who Is Defying All Odds

PH - September 20, 2017

Endurance Otobi is a blind shoe mender from Delta state Nigeria. He was not born blind, he started having problems with his sight while he was in primary…

Kano Government Declares Friday Public Holiday To Mark Islamic New Year
Religion
31 views
Religion
31 views

Kano Government Declares Friday Public Holiday To Mark Islamic New Year

Mabel - September 20, 2017

The Kano State Government has declared Friday, September 22, as public holiday to mark the new Islamic year. This is contained in a statement signed by the…

Anthony Joshua Names Two Boxers Who Can Strip Him Off World Heavyweight Champion
Sports
56 views
Sports
56 views

Anthony Joshua Names Two Boxers Who Can Strip Him Off World Heavyweight Champion

MT - September 20, 2017

Nigerian born British boxer, Anthony Joshua has opened up on two people who pose a threat to his soaring fame in boxing.   Anthony Joshua Nigerian-British boxing…

Fasasi Tosin Oladayo; The 18 Year-Old Nigerian Inventor With Four Patents To His Name
Inspiring
72 views
Inspiring
72 views

Fasasi Tosin Oladayo; The 18 Year-Old Nigerian Inventor With Four Patents To His Name

MT - September 20, 2017

Fasasi Tosin Oladayo  is a third year Aerospace engineering student. He currently own four patents and he is also the founder of Nigeria biggest telecommunication equipment company…

LIST: 4 Highly Profitable Talents And How They Work; According to An Expert
Inspiring
59 views
Inspiring
59 views

LIST: 4 Highly Profitable Talents And How They Work; According to An Expert

MT - September 20, 2017

When most Africans living in Africa hear or read the word talent the first thing that goes into their mind is music. Music has become one talent…

Serena Williams’ Fiance Is Enjoying Fatherhood And Here Is A Proof
Inspiring
55 views
Inspiring
55 views

Serena Williams’ Fiance Is Enjoying Fatherhood And Here Is A Proof

MT - September 20, 2017

  Serena Williams’ Fiance, Alexis Ohanian is really enjoying fatherhood. Yes, though engaged to a tennis star, he is absolutely enjoying the fatherhood and of course a happy…

Togolese Activist Called Out Yemi Alade For This Reason… Here’s What She Said
Entertainment
38 views
Entertainment
38 views

Togolese Activist Called Out Yemi Alade For This Reason… Here’s What She Said

MT - September 20, 2017

  It is no more news that Togo at the moment is unrest politically and following the crisis in the western African country between the ruling class and…

Psquare’s Beef: This Lola Okoye’s Message On Hate Is Totally Thought-Provoking [See Details]   
Entertainment
58 views
Entertainment
58 views

Psquare’s Beef: This Lola Okoye’s Message On Hate Is Totally Thought-Provoking [See Details]  

MT - September 20, 2017

  Several people on social media have been pointing accusing fingers at Peter Okoye’s wife, Lola Omotayo for been responsible for Psquare’s beef, it even got worse…

Comedian, Klint da Drunk And Wife Celebrate 10th Wedding Anniversary
Romance and Love
48 views
Romance and Love
48 views

Comedian, Klint da Drunk And Wife Celebrate 10th Wedding Anniversary

Mabel - September 20, 2017

Comedian Klint da Drunk and his wife, Lilien Klint-Igwemba, are celebrating their 10th wedding anniversary today, September 20th 2016. They both took to their Instagram pages to share…

What We Will Do If Buhari Deploys Military To Niger Delta
Politics
53 views
Politics
53 views

What We Will Do If Buhari Deploys Military To Niger Delta

PH - September 20, 2017

The Ijaw Youth Council, IYC, has warned the President Muhammadu Buhari-led Federal Government against its plan to deploy troops under the Operation Crocodile Tears to the Niger…

We Didn’t Burn Any Mosque in Enugu
Politics
33 views
Politics
33 views

We Didn’t Burn Any Mosque in Enugu

PH - September 20, 2017

The Indigenous People of Biafra (IPOB) has denied allegations that it was responsible for the burning of a mosque in Enugu State on Monday. The group, speaking…

Why I Rejected El-Rufai’s Endorsement
Politics
38 views
Politics
38 views

Why I Rejected El-Rufai’s Endorsement

PH - September 20, 2017

Lawmaker representing Kaduna Central Senatorial District, Shehu Sani, has described the endorsement of Governor Nasir el-Rufai by the All Progressives Congress in Kaduna State for a second…

Why Reps Ordered Banks To Unfreeze Patience Jonathan’s Account
Politics
35 views
Politics
35 views

Why Reps Ordered Banks To Unfreeze Patience Jonathan’s Account

PH - September 20, 2017

The House of Representatives committee yesterday, ordered some banks to immediately unfreeze accounts of former First Lady, Mrs Patience Jonathan. The committee also ordered Aridolf Wellness Home…

How Buhari Delayed In Dealing with Nnamdi Kanu
Politics
44 views
Politics
44 views

How Buhari Delayed In Dealing with Nnamdi Kanu

PH - September 20, 2017

A chieftain of the All Progressives Congress (APC) in Edo State, Charles Idahosa, has said President Muhammadu Buhari delayed in dealing with several issues especially Nnamdi Kanu,…

Why We Suspended Attacks On Niger-Delta Oil Facilities
Politics
47 views
Politics
47 views

Why We Suspended Attacks On Niger-Delta Oil Facilities

PH - September 20, 2017

Reformed Niger Delta Avengers, RNDA, a coalition of nine militant groups, has announced temporary suspension of attacks on oil and gas facilities in the Niger Delta region.…

Loading...