The Naira’s trend that started in late May is most likely to continue, and the country is not alone in the debacle as Kenya, Zambia, Uganda, and Ghana will see their currencies depreciate, according to Reuters.
A report by Reuters states that Nigeria’s naira will likely weaken slightly in the coming week as liquidity shortage in the official window persists even after the central bank removed restrictions on the exchange rate market.
The naira hit a low of N831 against the dollar on the official market on Tuesday, edging closer to the N840 reported by the FMDQ Exchange late last month. It is currently weaker on the black market at N860.
There has been optimism that the unification of the foreign exchange market would ease the flow of foreign exchange on the market. And now it appears the central bank is losing the battle to sustain a convergence as currency scarcity continues to plague companies and households.
Some African countries have been beset by currency crisis and rising inflation since they removed subsidies on Premium Motor Spirit (PMS).
The currencies of Ghana, Zambia, and Uganda, and Kenya are expected to weaken next week and there are concerns that the recent surmised attempted attack by Russia on Ukraine’s ports that ships grains could compound the woes of Africa countries as Russia and Ukraine are the largest producers and exporters of Wheat.
