The naira is one of the world’s four worst performing currencies in 2016, according to a report by Bloomberg LP.
The report indicated that the Nigerian currency has lost 36.68 per cent of its spot returns for the year.
Other currencies in the bottom four are:
- The Egyptian pound
- The Suriname dollar
- The Venezuela bolivar
Which dropped by 58.84 per cent, 46.68 per cent and 37 per cent, respectively, for the period.
The currencies that performed well are the Russian ruble, Brazilian real, the palladium, the Iceland krona, and silver, which appreciated by 21.31%, 20.96%, 20.08%, 14.42% and 14.41% respectively – ending the year as the best five performing currencies of the world.
Two Africa currencies, the Zambian kwacha and South African rand, emerged as the sixth and seventh best performing currencies in the world. The kwacha and rand appreciated by 11.96 per cent and 11 per cent respectively.
The report stated: “It was a particularly bad year for any currency called the ‘pound’. The Egyptian version was the worst performer in 2016 as the nation took the dramatic step of allowing it to trade freely in an attempt to stabilise an economy struggling with a dollar shortage and concerns over social unrest. Britain’s pound tumbled after the Brexit and never recovered.”
“When it comes to currencies issued by governments and central banks, the Russian ruble has been the best performer of the year as the oil market rebounded.
“While the UK currency’s slide didn’t match those in some emerging markets, it did tally the worst performance among major currencies.”
Some of the factors that affected the Naira according to Bloomberg included bombing of pipelines by militants and the economic recession.
It would be recalled, the Nigerian currency on Thursday closed 490 to a dollar at the parallel market and maintained 305.25 at the official market segment pegged by the Central Bank of Nigeria.