According to a recent Bloomberg report, Nigeria’s Naira has garnered international attention for its unfortunate distinction as the worst-performing currency globally in the first half of 2024.

The Naira’s decline has been attributed to factors such as devaluation, inadequate dollar liquidity, and significant market volatility. These challenges have reportedly thwarted the Central Bank of Nigeria’s efforts to stabilize the currency, despite their significant measures.

Bloomberg’s analysis, released on Friday, June 28, underscored the severity of the Naira’s decline. The Naira experienced its ninth consecutive day of weakening, reaching ₦1,510 per dollar by June 27. This marks a troubling trend, constituting the longest period of decline since July 2017 and amounting to a 40 percent drop since the beginning of the year.

Further exacerbating the situation, PwC’s economic report on Nigeria revealed a staggering 67.8 percent depreciation of the Naira against the dollar, plummeting from an average of ₦461.1 in May 2023 to ₦1,433.80 in May 2024. Despite efforts through foreign exchange market reforms, including measures to enhance price discovery and boost liquidity, the Naira’s value has continued to deteriorate.

Earlier in 2024, the Naira briefly showed signs of resilience, even becoming the best-performing currency globally in March. This brief period of strength, amidst the ongoing challenges, offers a glimmer of hope for the Naira’s future stability.

Governor Olayemi Cardoso of the Central Bank of Nigeria expressed cautious optimism, suggesting that the worst of the Naira’s volatility might be behind. Despite recent stabilization efforts, ongoing economic challenges continue to pose uncertainties for Nigeria’s currency outlook in the latter half of 2024.

The Naira’s struggles underscore broader concerns about economic stability and policy effectiveness in Africa’s largest economy as authorities work to navigate turbulent financial waters amid global economic pressures.