Naira now Africa’s worst performing currency of 2016

According to report, the Nigerian
currency - Naira - took a dive this
Thursday at both the parallel and
official markets, becoming the worst
performing currency in Africa in
2016.

The naira, which began trading at
around 283 to the dollar at the
interbank market on Thursday,
depreciated to 284/$1 to become
the third worst performing currency
in the world for 2016.

Nigerian naira, according to
Bloomberg data, came ahead of only two currencies in the world –
Venezulan bolivar and Suriname
dollar. At the Nigerian parallel market, the naira fell to its lowest level since the start of the new foreign exchange regime, trading at 363/$1 and 485 to the pound in Abuja and Port Harcourt.

The Euro traded above N390 in
Lagos and under 380 in the nation’s
capital, Abuja.

In 2016, the naira has lost 29.61 percent of its value on the official
market, following CBN's decision to
allow for a floating foreign exchange regime. Currency performance

The top three performing currencies
of 2016 are all universal currencies;
Silver, Gold and Platinum, which have gained 45.93 percent, 25.11 percent and 22.79 percent respectively. These currencies are followed by the Brazilian real, the Russian rubble and the Japanese Yen.

The best performers in Africa are
South African rand, Zambian
kwacha, Somali shilling and
Botswana Pula, which have gained
8.88 percent, 8.69 percent, 5.54
percent and 4.95 percent respectively.

At the base of the African currencies
is the Naira. This is trouble and must
not be allowed to continue. The CBN said they are "reasonably optimistic" that Naira would eventually settle at 250 to the dollar.