.png)
.png)
1 day ago
6
- On the archetypal trading time of July 2025, the naira strengthened somewhat against the dollar connected some the Nigerian Foreign Exchange Market (NFEM) and the parallel market
- Last week saw improved overseas currency liquidity and important inflows from Foreign Portfolio Investors (FPIs), contributing to the naira's appreciation.
- However, the naira had the worst show of immoderate African currency betwixt 2023 and 2024, losing 131.8% of its value, amid challenges similar ostentation and others
Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
On Tuesday, the archetypal trading time of July 2025, the naira strengthened versus the dollar connected each overseas speech (FX) markets, maintaining a inclination of comparative currency stableness fueled by ongoing reforms.
Source: Getty Images
According to information from the Central Bank of Nigeria (CBN), the naira strengthened somewhat by N0.14 astatine the Nigerian Foreign Exchange Market (NFEM), ending astatine N1,529.57 per dollar arsenic opposed to N1,529.71 connected Monday.
In the parallel market, the worth of the naira accrued by N10, closing astatine N1,560, up 0.6 percent from the erstwhile day's worth of N1,570.
Last week, the overseas currency marketplace saw a important summation successful US dollar liquidity owed to higher sell-side engagement and much inflows from Foreign Portfolio Investors (FPIs).
According to a study by Access Bank, the naira gained N6.43 to settee astatine N1,545.20 per US dollar, indicating a mean appreciation supported by the improved supply.
According to Access Bank analysts, if the existent inclination successful superior inflows continues, persistent FPI inflows should support speech rates nether downward unit successful the foreseeable future.
According to speech complaint information provided by Afreximbank and different sources, South Sudan, Zimbabwe, and Nigeria recorded the astir currency depreciations versus the US dollar successful 2024, reflecting the continent's divers economical circumstances.
According to the statistics, monetary argumentation changes, inflationary pressures, fiscal imbalances, and successful definite situations, important speech complaint reforms caused crisp drops successful immoderate currencies portion keeping others comparatively steady.
The insubstantial states that betwixt 2023 and 2024, Nigeria's naira had the poorest show of immoderate African currency, losing 131.8 percent of its worth successful narration to the US dollar.
Following continuous efforts by the Central Bank of Nigeria to harmonize currency rates and gully successful overseas concern contempt continued overseas speech shortages and high inflation, the worth of the naira dropped from N636.13 to N1,474.60 to the dollar.
South Sudan's pound, which fell 131.1 percent from 930.33 to 2,150.00 per dollar wrong the aforesaid clip period, was not acold down Nigeria. The country's superior root of overseas currency earnings, lipid income, person been disrupted by warring and ongoing fiscal instability, according to analysts.
Following an astounding 835.9 percent nonaccomplishment the twelvemonth before, Zimbabwe's currency likewise maintained its problematic trajectory, dropping 55.6 percent from 3,509.17 successful 2023 to 5,460.00 successful 2024.
The federation inactive faces pressures from dollarization, hyperinflation, and debased spot successful monetary authorities contempt continuous improvements.
Ethiopia (51.7 percent), Egypt (47.9 percent), and Malawi (53.7 percent) besides saw important depreciations. Local currencies suffered important losses successful each 3 situations arsenic governments struggled with increasing indebtedness costs, cuts to subsidies, and argumentation changes supported by the IMF.
Source: Getty Images
One among the worst-performing currencies successful 2022, the Ghanaian cedi mislaid further 28.6% of its worth successful 2024 owed to restrictive outer financing conditions and persistent balance-of-payments issues.
The Zambian kwacha mislaid 29.4% of its worth portion Angola's kwanza depreciated 27%, highlighting the fiscal and outer weaknesses of respective commodity-dependent economies.
Nigeria’s indebtedness grows amid naira depreciation
Legit.ng reported that the Debt Management Office (DMO) reports that successful the archetypal 4th (Q1) of 2025, Nigeria's full national indebtedness accrued to N149.38 trillion.
The indebtedness bureau revealed that the full nationalist indebtedness accrued by N4.72 trillion, oregon 3.3 percent, from the N144.67 trillion recorded successful the 4th fourth (Q4) of 2024.
According to the DMO, the wide outer indebtedness stands astatine N70.63 trillion ($45.9 billion), portion the full interior indebtedness is N78.75 trillion ($51.2 billion).
PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!
Source: Legit.ng
