Nigerian Naira Suffers Biggest Monthly Fall in 5 Years

Due to low oil prices and political instability the Naira suffered it’s biggest fall in over five years this month. Reuters reports.

The currency shed 8.3 percent to the dollar in February, dealers said, worse than a 6.9 percent fall in November after central bank devalued the currency by 8 percent in order to save its foreign reserves.


The naira crashed through a psychologically important level of 200 to the dollar this month in a rout triggered by weak oil prices and escalating tension over the postponement of a presidential election in Africa’s top oil producer, prompting the central bank to scrap its bi-weekly forex auctions.

However, reserves have fallen steadily and were down 8.6 percent by February 26 from a month ago, to stand at $31.46 billion after central bank stepped up support for the currency.

The naira closed at 202 on the interbank market on Friday, a level it broadly traded at this week, dealers said.

At its weakest, the naira was quoted at a record low of 206.60 to the dollar earlier this month, a decline of 20 percent since the start of November.