Naira Plunges to Record Lows, Sparks Protests
Nigeria's naira hit record lows on both official and unofficial markets, while stocks experienced their largest one-day drop in over a year as investors sold off local assets. The currency fell to 1,712 naira per dollar, reflecting the country's ongoing dollar shortages and inflation rate reaching almost 30% in annual terms. Analysts warn that without policy measures to curb inflation, the naira's devaluation and negative real yield in Nigerian debt securities could deter foreign investors, while stocks, including heavyweight Dangote Cement and MTN, fell 10% on the bourse. Central bank Governor Olayemi Cardoso has hiked open market rates to attract investors to bills, but the fall in the naira means yields would need to rise further.
