Nigeria’s currency, the naira, took its biggest hit in about two weeks, falling to its lowest value ever as fewer US dollars were available for exchange in the market.
On Monday, the naira’s value dropped by 4.3% – the steepest fall since October 15 – making one US dollar now worth N1,670.65. This sharp decline happened because the amount of dollars available for trading plummeted by 72%, leaving only $81 million in the market – the lowest amount seen in more than a month.
The dollar shortage has continued because Nigeria is currently focused on building up its foreign reserves. These reserves reached $39.4 billion on October 24, the highest amount the country has saved in about two years.
Nigeria, which makes most of its money from selling oil, has been struggling to keep its currency stable since last June when the government allowed the naira to be freely traded against the dollar. Since then, the naira has lost about 70% of its value. This makes it one of the world’s worst-performing currencies in 2024, doing better than only two other countries’ money: the Lebanese Pound and the Ethiopian Birr.
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