Naira Gets New Ranking in World Bank’s List of Worst Performing African Currencies in 2024

• The Nigerian naira has been ranked among the worst-performing currencies in Sub-Saharan Africa for 2024
• World Bank revealed that since the start of 2024, the value of Nigerian currency has depreciated by 45%
• There is no respite yet for the naira as it continues to perform poorly in the official and unofficial markets

World Bank has ranked the naira as the third worst-performing currencies in the sub-saharan Africa.

This was disclosed in the October 2024 Africa’s Pulse report published by the World Bank and obtained by Legit.ng.

According to the World Bank, the naira has weakened by approximately 43% year-to-date, positioning it alongside the Ethiopian birr and South Sudanese pound as one of the region’s weakest currencies.

Part of the report reads.

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BDC reports changes in exchange rate as naira loses to dollar in parallel market

“By the end of August 2024, the Ethiopian birr, Nigerian naira, and South Sudanese pound were among the worst performers in the region.

“The Nigerian naira continued to lose value, with a year-to-date depreciation of about 43 percent as of the end of August.

“Surges in demand for U.S. dollars in the parallel market, driven by financial institutions, money managers, and nonfinancial end-users, combined with limited dollar inflows and slow foreign exchange disbursements to currency exchange bureaus by the central bank, explain the weakening of the naira.

“By the end of July 2024, the Central Bank of Ethiopia pledged to operate a market-based exchange rate with limited forex intervention moving forward.

“The Ethiopian birr dropped approximately 30 percent after the announcement, likely leading to inflationary effects.”

Here is a snapshot of the naira performance

Furthermore, the World Bank highlighted that the Kenyan shilling and South African rand are the best-performing currencies.

Read also

Naira reverses gain, crashes by over N100 in hours against US dollar

The Kenyan shilling appreciated by 21%, making it the best performer in Sub-Saharan Africa, while the South African rand strengthened by 3.1%.

There is hope for naira

Legit.ng earlier reported that the US Federal Reserve has decided to lower interest rates, and this will weaken the United States dollar.

The decision has strengthened the Nigerian currency in the foreign exchange market.

Economists say that the US Federal Reserve’s decision will also help attract more investment into Nigeria.

Source: Legit.ng