58 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.

ALSO READ  How Yoruba Actress Toyin Majekodunmi Died 2 Weeks After Husband Left Nigeria For America!!

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Your email address will not be published.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

PDP Convention: Loud Promotion Of Corruption -by Reuben Abati
Politics
3 views
Politics
3 views

PDP Convention: Loud Promotion Of Corruption -by Reuben Abati

PH - December 12, 2017

The elective Convention of the Peoples Democratic Party (PDP) that took place at the Eagle Square in Abuja on Saturday, December 9, was a charade and an…

Why Nigerian Youths Are Not Ready For Leadership, Change – Amaechi
Politics
10 views
Politics
10 views

Why Nigerian Youths Are Not Ready For Leadership, Change – Amaechi

PH - December 12, 2017

Rotimi Amaechi, Minister of Transportation, has said Nigerian youths are not ready to embrace change. The former Rivers State Governor said this while stressing that Nigerian youths…

Bishop Mathew Kukah Claims President Buhari’s Ministers Are Unhappy
Politics
18 views
Politics
18 views

Bishop Mathew Kukah Claims President Buhari’s Ministers Are Unhappy

MT - December 12, 2017

While speaking in an interview with a social media expert, Abang Mercy, the Bishop of Sokoto Diocese of the Catholic Church, Matthew Kukah, said that some ministers…

How President Buhari Cured Nigeria – Yahaya Bello
Politics
15 views
Politics
15 views

How President Buhari Cured Nigeria – Yahaya Bello

MT - December 12, 2017

Governor Yahaya Bello of Kogi State has claimed that President Muhammadu Buhari has cured the economy and was stamping out graft since assuming power in 2015.  …

Actor Yul Edochie Speaks On Anambra Election For The First Time – ‘Willie Obiano Humiliated Us’
Entertainment
10 views
Entertainment
10 views

Actor Yul Edochie Speaks On Anambra Election For The First Time – ‘Willie Obiano Humiliated Us’

MT - December 12, 2017

While speaking during the inauguration of the executive council of the National Association of Nigerian Students, Nollywood actor, Yul Edochie, on Monday, described the outcome of the…

Oba Akiolu Denies Ever Saying Benin Owned Lagos In New Interview
Art, History and Culture
19 views
Art, History and Culture
19 views

Oba Akiolu Denies Ever Saying Benin Owned Lagos In New Interview

MT - December 12, 2017

The Oba of Lagos, Rilwan Akiolu, on Monday said he never said that the Benin people owned Lagos. The monarch spoke in Victoria Island, Lagos, at the…

NYSC Releases Date For 2017 Batch B, Stream 2 (See Time Table)
Best of Nigeria
21 views
Best of Nigeria
21 views

NYSC Releases Date For 2017 Batch B, Stream 2 (See Time Table)

MT - December 12, 2017

The management of the National Youth Service Corps (NYSC) has announced date for 2017 Batch B, stream 2 Corps members.   The orientation course will hold between…

#EndSARS: Falana Attacks SARS, Says It Is A Partially Illegal Squad And A Legacy Of Military Dictatorship
Politics
21 views
Politics
21 views

#EndSARS: Falana Attacks SARS, Says It Is A Partially Illegal Squad And A Legacy Of Military Dictatorship

MT - December 12, 2017

Human Right Activist and Lagos based lawyer, Femi Falana has attacked the Special Anti-robbery Squad (SARS), calling it a legacy of the military government and a partially…

Why 21 Ibadan Kings Issued Deposition Notice To Olubadan, Oba Saliu Adetunji
Art, History and Culture
18 views
Art, History and Culture
18 views

Why 21 Ibadan Kings Issued Deposition Notice To Olubadan, Oba Saliu Adetunji

MT - December 12, 2017

The 21 Ibadan kings , installed by the Oyo State Governor Abiola Ajimobi on August 27 , 2017 , have issued a dethronement notice to the Olubadan…

Tithes And Offering: Meet The Nigerian Pastor Who Just Predicted Daddy Freeze’s Death Ahead Of 2018
Entertainment
26 views
Entertainment
26 views

Tithes And Offering: Meet The Nigerian Pastor Who Just Predicted Daddy Freeze’s Death Ahead Of 2018

MT - December 12, 2017

As the subtle jabs between Daddy Freeze and Leke Adeboye, son of Pastor Enoch Adejare Adeboye festered yesterday, a pastor has threatened the former on Instagram via…

Plus-size Nollywood Actress, Eniola Badmus Hangs Out With Wizkid And Obafemi Martins (Photos)
Entertainment
23 views
Entertainment
23 views

Plus-size Nollywood Actress, Eniola Badmus Hangs Out With Wizkid And Obafemi Martins (Photos)

MT - December 12, 2017

Big, bold and beautiful actress, Eniola Badmus was pictured with Super Eagles goal poacher, Obafemi Martins and Wizkid at a beach party in Lagos State.   Wizkid…

Why The World Disrespects Africa Today – Ex American Ambassador To Nigeria Speaks
Shocking
24 views
Shocking
24 views

Why The World Disrespects Africa Today – Ex American Ambassador To Nigeria Speaks

MT - December 12, 2017

Amb. Walter Carrington (OFR), a former American Ambassador to Nigeria, has said that the failure of Africa to fully realise its potential has earned it scorn rather than respect…

FG Opens Consultation To Deal With Farmers-Herdsmen Conflict
Politics
32 views
Politics
32 views

FG Opens Consultation To Deal With Farmers-Herdsmen Conflict

PH - December 12, 2017

The Federal government has opened nationwide consultations with opinion leaders towards ending incessant farmers/herdsmen conflict. Vice President Yemi Osinbajo opened the dialogue with the hosting of some traditional rulers from…

22-Year-Old Lady Who Was Assaulted At The Lagos State Carnival Shares Her Story
Shocking
60 views
Shocking
60 views

22-Year-Old Lady Who Was Assaulted At The Lagos State Carnival Shares Her Story

PH - December 12, 2017

A 22-year-old lady Olukoya Ayomikun Ibukunoluwa shared on her Instagram how she was s3xually assaulted at the Lagos State Carnival. She was one of the dancers who performed at…

Why South-West Could Not Win The PDP Chairmanship Position – Markarfi Opens Up
Politics
54 views
Politics
54 views

Why South-West Could Not Win The PDP Chairmanship Position – Markarfi Opens Up

MT - December 12, 2017

While speaking on Channels TV programme, "Sunrise Daily" on Monday, former chairman of the caretaker committee of the Peoples Democratic Party (PDP), Ahmed Makarfi, spoke on the possible reason…

Nigeria’s Large Population A Big Liability – Former President Obasanjo
Politics
29 views
Politics
29 views

Nigeria’s Large Population A Big Liability – Former President Obasanjo

PH - December 12, 2017

Former President Olusegun Obasanjo says Nigeria’s present population stands at 193 million and by 2045, it is projected to reach 400 million and unless spirited efforts are…

Nigerian Dance Hall Artist, Timaya Bags Grammy Nomination
Entertainment
37 views
Entertainment
37 views

Nigerian Dance Hall Artist, Timaya Bags Grammy Nomination

MT - December 12, 2017

Singer, Timaya is edging towards becoming a Grammy recipient. The dance hall artiste made an input into an album that recently got a Grammy nomination. Timaya was…

Nigeria Set To Generate A Record 8,129MW In 2018 – Power Minister, Fashola
Politics
36 views
Politics
36 views

Nigeria Set To Generate A Record 8,129MW In 2018 – Power Minister, Fashola

MT - December 12, 2017

The Nigerian Government on Monday said it is expecting additional 1,119 Mega Watts from generating plants that will go on stream next year. At the moment the…

Loading...