Nigeria’s naira weakened 40% against the dollar between January and June this year, making it the worst-performing currency in the first half as a steep devaluation, insufficient dollar liquidity and market volatility hampered efforts to stem its rout.
It’s weakened 0.2% to 1,510 per dollar by the close on Thursday, according to FMDQ data.
“While the naira is undervalued and has seen significant adjustment, the supply of dollars needs to improve for the currency to be supported,” Samir Gadio, head of Africa strategy at Standard Chartered Bank Plc in London, said.
The local unit has lost about 70% of its value against the dollar since June 2023, when President Bola Tinubu’s government introduced policy changes to lure inflows to help revive the economy.
Central bank Governor Olayemi Cardoso said this week the redulator believes the currency’s volatility may be a thing of the past.
Besides the naira, Egypt’s pound and Ghana’s cedi were the world’s other worst performers in the first half.
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