Business Hilights
Tracking Nigeria's Headline Business News Online

Naira leads 3 other global currencies in worst performance last year

Fresh report by global financial new channel, Bloomberg LP has placed Nigeria’s naira as one of the world’s four worst performing currencies in 2016 financial year just ended. The report also added that not much is on ground to revamp the ailing currency which translates to frustrating economy after all.

According to the report, naira is said to have lost 36.68% of its spot returns for the year. The Egyptian pound dropped 58.84%, Suriname dollar lost 46.68% and Venezuela’s bolivar went down 37% in the period.

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, ended the year as the best five performing currencies of the world.

Two Africa currencies, the Zambian kwacha and South African rand, appreciated by 11.96% and 11% respectively, to emerge as the sixth and seventh best performing currencies of the world.

Bloomberg LP noted in the report that “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.

Efforts to get the reaction of the apex bank as at press time failed, however, the federal government has assured in the new year message that naira will bounce back before the end of first quarter.