Currency News: Nigerian’s Naira Facing Volatility

Currency News

Lately, investors seems to finally interest themselves in Naira, the currency of Nigeria. Indeed, the country is facing cash problems along with dollar shortages.

Currency News


Nigeria’s currency, Naira, is currently worth 305 to the dollar. However, there are multiple rates, actually, three different: the official one, the second one at which banks lend to each other and also the one used for international money transfer. Moreover, one other is to take into account: it’s the one represented on the black market. Currently, it represents 380 Naira to the dollar. In addition, Naira is going through a severe shortage of dollars. Thus, the government opened a foreign-exchange window in order to mitigate the problem.

This window would allow potential portfolio investors to be sure of a relevant price. It will enable them to ignore the multiple rates problem. However, the plunge of oil prices weighted heavily on the Nigerian currency, putting lots of pressure on the Nigeria’s economy. To overcome this problem, the intervention of Central Bank of the country has been required to protect its currency from more depreciation. The Central Bank of Nigeria has also had to deal with a strong shortage of dollar’s reserve, forcing almost everyone to rely on black markets.

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