Nigeria’s naira has missed out of the Representative Exchange Rates for Selected Currencies for June 2024, published by the International Monetary Fund amid exchange rate fluctuations.
The Washington-based Fund listing features currencies around the globe with several African currencies such as the Algerian dinar (134.492200), Botswana pula (0.072800), Mauritian rupee (46.478600), South African rand (18.697800) featured, findings by BusinessDay showed.
The IMF’s Representative Exchange Rates list provides a benchmark for currencies, pegging them against the US dollars in order to facilitate international trade and financial transactions.
“These representative exchange rates, which are reported to the Fund by the issuing central bank, are expressed in terms of currency units per U.S. dollar, except for those indicated by (1) which are in terms of U.S. dollars per currency unit,” the report stated.
Nigeria’s local currency omission from the listing follows the recent fall of the naira even as the central bank continues to deploy various monetary tools to halt the free-fall.
The bruised naira was once accorded the best performing currency in March but couldn’t hold its gains before it slipped to the worst performing within a month.
The naira is however poised to stabilise around N1,350 to N1,450 within the next 12 months, says Bismarck Rewane, chief executive officer Financial Derivatives Company.
Experts believe that the country’s economic woes have been fuelled by inflation, currency fluctuations, and a decline in foreign investment.
Other currencies listed in the Fund’s report include Asia: Chinese yuan (7.246300), Japanese yen (157.150000), Indian, rupee (83.065900), Korean won (1,381.600000), Kuwaiti dinar (0.306500), Omani rial (0.384500), Philippine peso (58.524000), Qatari riyal (3.640000), Saudi Arabian riyal (3.750000), Singapore dollar (1.351100), Thai baht (Not Available), U.A.E. dirham (3.672500), and Brunei dollar (1.351100).
Europe: Euro (1.084200), U.K. pound (1.271450), Czech koruna (22.798000), Danish krone (6.879700), Norwegian krone (NA), Polish zloty (3.950100), Russian ruble (89.375500), Swedish krona (10.517890), Swiss franc (0.901100).
North America: Canadian dollar (1.363500), Mexican peso (17.633800) U.S. dollar (1.000000), Trinidadian dollar (6.706100).
South America: Brazilian real (5.236700), Chilean peso (916.770000), Peruvian sol (NA), Uruguayan peso (38.786000).
Oceania: Australian dollar (0.664600), New Zealand dollar (NA).
“The delisting of the naira in the IMF’s currency list poses a grave consequences for our economy. It has a way of dampening investors confidence. It simply means our currency lacks international repute,” said a leading economist who would not want to be mentioned.
“We need more FDIs but this can only be achievable if the investors find our currency attractive and our economy suitable enough to invest,” the source added.
