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Naira rated worst performing currency in 2024

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By Kayode Sanni-Arewa

The naira has emerged as the worst-performing currency in the world in the first half of 2024.

According to a report by Bloomberg on Friday, devaluation, insufficient dollar liquidity, and market volatility have hindered efforts by the Central Bank of Nigeria to strengthen the currency.

Besides the naira, Egypt’s pound and Ghana’s cedi were the world’s other worst performers in the first six months of the year.

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Tracking data from FMDQ, Bloomberg said that the naira weakened for a ninth straight day to 1,510 per dollar by the close on Thursday.

“The losing streak is the longest since July 2017 and takes the decline since the start of the year to 40 per cent.

“The naira’s performance is the worst among global currencies tracked by Bloomberg beside that of the pound in Lebanon, which is undergoing an economic crisis and witnessing dollarisation,” the report noted.

Providing an update on the currency, the Head of Africa Strategy at Standard Chartered Bank Plc, Samir Gadio, in a mail said, “While the naira is undervalued and has seen significant adjustment. The supply of dollars needs to improve for the currency to be supported.

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“Portfolio inflows have yet to pick up, even amid still-attractive local rates

“What will matter going forward is whether it can stabilise on improving foreign exchange inflows and perhaps see some appreciation.”

According to PwC in its latest economic report on Nigeria, the naira depreciated against the dollar by 67.8 per cent from an average of N461.1 in May 2023 to N1,433.80 in May 2024.

“The depreciation took effect despite foreign exchange market reforms by CBN to achieve price discovery and attract liquidity to the market,” PwC said.

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In March, the naira had emerged as the best-performing currency in the world, a feat which was reversed the next month.

Bloomberg added that the currency was volatile between mid-April and May due to the imbalance between demand and supply for the greenback before the trend moderated in June on an improvement in dollar inflows.

Meanwhile, earlier this week, the CBN Governor, Olayemi Cardoso, stated that the worst of the naira’s volatility may be over.

The naira has traded in a narrow range between 1,473/$ and 1485/$ this month, according to FMDQ data compiled by Bloomberg.

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That has sent its 10-day rolling volatility to the lowest in a year and its 100-day swings to the least since November.

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Just in: Shettima jets out to attend Senegal’s independence

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Vice President Kashim Shettima has departed Abuja for Dakar, Senegal for official assignment.

The VP is expected to represent President Bola Ahmed Tinubu at the West African nation’s 65th Independence Anniversary celebrations.

Senegal marks its Independence Day on April 4 each year, commemorating its liberation from French colonial rule in 1960.

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The annual celebration is a significant event featuring national parades, cultural displays, and ceremonies highlighting the country’s achievements and unity.

A statement issued on Thursday by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, said Shettima’s participation followed an official invitation from Senegalese President, Bassirou Diomaye Faye.

This underscored the strong diplomatic and economic ties between Nigeria and Senegal.

The two nations share longstanding relations, particularly within the Economic Community of West African States (ECOWAS), fostering cooperation on regional security, trade, and development initiatives.

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The event is expected to reaffirm Senegal’s commitment to democratic governance and regional cooperation.

Vice President Shettima is scheduled to return to Nigeria immediately after the one-day celebrations, continuing his engagements in national development and diplomatic outreach.

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Just in: “Ignore rumour mongers, there was no time I collapsed “-Wike asserts

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Federal Capital Territory FCT minister, Nyesom Wike on Thursday dismissed social media reports that he collapsed last week, describing the reports as the handiwork of rumour mongers trying to score cheap political points.

Wike spoke after he inspected four ongoing projects in the territory, including the International Conference Centre ICC.

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CJ transfers Natasha’s case to Justice Nyako

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The Chief Judge of the Federal High Court, Justice John Tsoho, has reassigned the suit filed by Senator Natasha Akpoti-Uduaghan against Senate President Godswill Akpabio and others to Justice Binta Nyako.

The case, which was initially handled by Justice Obiora Egwuatu, will now be heard afresh by Justice Nyako following Egwuatu’s withdrawal from the matter. His decision came after allegations of bias were reportedly raised by Akpabio, the third defendant in the suit.

Justice Egwuatu withdrew from the case on March 25, citing concerns over judicial integrity.

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“Justice is rooted in confidence in the court. Once a litigant expresses his belief that there is bias or likelihood of bias on the part of the judge, it will not be in the interest of justice for the judge to continue,” he stated.

He forwarded the case file to the Chief Judge for reassignment.

Senator Akpoti-Uduaghan, who represents Kogi Central Senatorial District, had filed the lawsuit to halt an investigation into her alleged misconduct by the Senate Committee on Ethics, Privileges, and Public Petitions. She had sought an interim injunction to prevent the committee from proceeding with disciplinary actions against her.

Justice Egwuatu previously issued an order on March 4 declaring Akpoti-Uduaghan’s suspension by the Senate null and void. However, on March 19, he set aside a portion of his ruling after hearing arguments from both sides. The Senate had filed a motion urging the court to vacate the order, arguing that it interfered with its legislative duties and could lead to a constitutional crisis.

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During legal proceedings, the Senate’s lawyer, Chikaosolu Ojukwu, argued that the court’s order restrained the Senate from fulfilling its constitutional responsibilities, while Akpoti-Uduaghan’s counsel, Michael Numa, opposed the motion, describing it as a disregard for the court’s authority. He urged the court to dismiss the Senate’s application and take disciplinary action against the defendants for contempt.

Akpoti-Uduaghan also filed a contempt charge, asserting that her suspension was a deliberate violation of the court’s interim injunction. She maintained that the court’s directive was duly served on the defendants, but they proceeded with actions in defiance of the ruling.

Nigeria’s 1999 Constitution (as amended) grants the National Assembly the authority to manage its internal affairs, including disciplining its members. However, this power is not unlimited. It must be exercised in accordance with constitutional provisions, due process, and the rule of law.

The principle of separation of powers, outlined in Section 4 for the legislature, Section 6 for the judiciary, and Section 5 for the executive, ensures that each arm of government functions independently without interference. However, courts have the authority to review legislative actions if they infringe on fundamental rights or violate existing laws.

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Judicial rulings have established that while legislatures hold disciplinary authority, their actions must align with the principles of natural justice, particularly the right to a fair hearing, as outlined in Section 36 of the Constitution. The outcome of this case could clarify the extent of legislative immunity and determine whether courts can override Senate disciplinary actions when due process is at stake.

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