Nigeria: Nigerian naira risks further weakening due to dollar shortage, says Fitch Ratings
Nigerian money - Naira, a background
Nigeria’s national currency, the naira, is facing a possible further devaluation due to the shortage of dollars, according to analysis by Fitch Ratings.
Last June, a devaluation of about 40% of the naira was undertaken to unify official and parallel exchange rates, but since August, the gap between the two rates has begun to widen due to insufficient supply of government dollars.
The official exchange rate is currently much lower than the parallel exchange rate. This suggests that the Nigerian government is struggling to stabilize the naira, which could lead to further devaluation of the national currency in the future.
