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Nigeria’s Naira among worst-performing currencies in Africa— World Bank

Published

1 year ago

October 5, 2023

Multilateral body, the World Bank has said that Nigeria’s currency, the Naira, is among the worst-performing currencies in Africa.

The bank explained in its report titled, ‘Africa’s Pulse: An analysis of issues shaping Africa’s economic future (October 2023 | Volume 28)’ that, “So far this year, the Nigerian naira and the Angolan kwanza are among the worst performing currencies in the region: these currencies have posted a year-to-date depreciation of nearly 40℅.

“The weakening of the naira was triggered by the central bank’s decision to remove trading restrictions on the official market. For the kwanza, it was the decision of the central bank to stop defending the currency as a result of low oil prices and greater debt payments.”

According to the World Bank, South Sudan, Burundi,
the Democratic Republic of Congo, Kenya, Zambia,
Ghana and Rwanda all have their currencies lose value at 33%, 27%, 18%, 16%, 12%, 12% and 11% respectively.

The bank also stressed that for several countries in the African region, parallel exchange market rates were exacerbating inflationary issues.

In Nigeria’s case, when the official Investors and Exporters window of the foreign exchange market opened in June 2023, the Central Bank of Nigeria instructed Deposit Money Banks to eliminate the rate cap on the naira and permit the currency to freely float against the dollar and other major world currencies.

Since that time, the naira has officially declined from N473.83 to 800 and as high as N1,000 at the black market as a result of the growing gap between the parallel and official exchange rates of the naira.

According to the report, as the Central Bank’s operations to limit foreign exchange demand and maintain artificially low exchange were confronted with diminishing FX supply from oil revenues, the parallel rate premium climbed to 80% in November 2022 and subsequently to roughly 60% in June 2023.

Related Topics:CBN Featured Naira Nigeria World Bank

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”