Monday, 7 November 2022



Nigeria’s Naira Now Among Worst Currencies In The World, See Others

Tony Gists The Developer Releases His first Mobile Gaming android Application. Download from Play store
https://play.google.com/store/apps/details?id=tony.gists1application
    



It was learnt that Naira’s peers include Sierra Leone’s Leone, which is down 36%, and the Egyptian pound, which has lost 35%.

 
A new report has revealed that Nigeria’s naira is among the world’s worst-performing currencies, after Ghana’s cedi, which is down nearly 55% this year, and the Sri Lankan Rupee.
 
Bloombery reported that Naira’s peers include Sierra Leone’s Leone, which is down 36%, and the Egyptian pound, which has lost 35%.
 
Nigeria’s economy operates a tightly controlled official rate but it’s in the parallel market where the exchange rate of the local currency is largely determined by the level of demand for the dollar.
 
According to the report, Nigeria’s naira is officially said to be doing pretty well this year, down just 4% against a strong US dollar, ahead of the Canadian dollar and the Swiss franc. But that is only a small part of the story.
 
The official exchange rate is used only by the government and the well-heeled — ordinary Nigerians are suffocating under a 37% drop on the widely-used black market, which most have accepted as a better measure for the local currency.
 
Businesses and ordinary Nigerians are feeling the pain. The Naira volatility is the single largest contributor to the surge in inflation which is ravaging the economy, taking prices of virtually everything to the top and causing considerable concern ahead of the year-end festivities.
 
Rice, the staple now costs N51,000 a bag, and flight ticket fares are now well out of the reach of most people.
 
Nigeria’s central bank rations dollars at the official rate, cutting off access to many businesses and individuals, which in turn drives demand to the unauthorised black market, leading to a widening gap between the managed and parallel markets to more than 90%.
 
While the naira officially closed at 442.75 to the dollar on Friday, currency traders on the streets of Lagos, Nigeria’s commercial hub, quoted the greenback at 890 naira, according to Umar Salisu, a bureau de change operator who tracks the data.
 
The local unit’s drop in the black market started a day after the central bank announced last week that it will issue redesigned 200-, 500- and 1,000-naira notes from mid-December in a bid to mop up excess cash in circulation.
 
Nigerians are given until January 31 by the apex bank to exchange the existing bills for new ones, a tight deadline considering that the central bank estimates that as much as 2.7 trillion naira ($6.1 billion) sits outside bank vaults.
 
The report indicated that Nigeria has an average of 4.5 bank branches per 100,000 people and 45% of adults don’t have a bank account.
 
The naira’s slump is likely to continue in the near term given low oil revenue and rising outflows due to uncertainties associated with February’s presidential election, said Uche Uwaleke, a professor of finance and capital markets at the Nasarawa State University in central Nigeria. The dollar is seen as a safe haven.
 
“It’s evident that a lot of currency substitution is going on as many people now see the greenback as a better store of value,” Uwaleke added.


Are You On youtube? subscribe to Hot GIST Channel Latest Updates - @Hot Gist

Are You On youtube? subscribe to Tony Gists 2 Channel Latest Updates - @Tony Gists 2

Are You On youtube? subscribe to Honest Ose Channel Latest Updates - @Honest Ose

Are You On youtube? subscribe to Honest Web Solutions Channel Latest Updates - @Honest Web Solutions

Are You On youtube? subscribe to Xtremely Honest Channel Latest Updates - @Xtremely Honest

Are You On Twitter? Follow Us Now For Latest Updates - @tonygists

Are You On FACEBOOK? Like Our Page For Latest Updates - tonygists

Are You On FACEBOOK? Join Our Group For Latest Updates And Interactions - TonyGists


© 2022 Tonygists | Portions are © 2022 Associated Press. All rights reserved. This material may be published, broadcast, rewritten, or distributed.

Share This Post Via

Related Posts

Previous
Next Post »


Reliance Training and Management Consulting, a dynamic, fast growing indigenous entity, was established and duly registered with the aim to nurture, develop and innovate people and organisations through customized training, development and management consulting services, with excellent performance, deep sense of commitment, transparency, honesty and responsibility, to demonstrate the highest standard of technical and operational expertise.
 


 
Reliance is competently positioned to provide technical knowledge and skills relevant to practical management and business problems, to stimulate the creativity and innovation necessary to build a better community, a better nation and a better world with a committed mind set to contributing our best to the maximization of personal potentials and skills toward optimizing productivity and achieving organisational goals.
 
for more information click RELIANCE TRAINING AND MANAGEMENT CONSULTING

Ads