Nigeria's Naira is taking a beating from low oil prices and political uncertainty

The Nigerian naira has plunged more than 20% since last July—broadly the same trajectory as the price of oil, which has dropped some 50% in the same period. Though Nigeria’s economy is diversifying into telecoms and entertainment, oil still accounts for 90% of its export revenue.

Yesterday, the Naira broke through the psychological level of N200 to the dollar, after hovering around the N190 mark for a few weeks.

Central Bank of Nigeria‘s Governor, Godwin Emefiele, claims there are no plans to fight the naira’s free-fall, though there have been occasional dips into the bank’s reserves—said to total $33.5 billion—to slow the currency’s fall. “In 2001, 2002, reserves were as low as about $10 billion,” Emefiele told the Wall Street Journal. “If we could survive with $10 billion, I don’t see a reason why we cannot survive with the $33.5 billion that it is today.”

Read more: Nigeria’s currency is taking a beating from low oil prices and political uncertainty – Quartz.

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