The central bank of Nigeria has devalued the naira (NGN) by 7.6% against the dollar (USD) as the country moves towards a unified exchange rate system for the local currency being the biggest oil producer in Africa.
The CBN replaced the fixed rate of 379 NGN to a USD used for official transactions with the nafex or the I&E exchange rate of 410.25 NGN per USD, following the date curated from the CBN’s website.
The unification of these rates is supposed to improve the Nation’s currency-management system and assist in meeting the conditions of investors and the International Monetary Fund for transparency. The country previously adopted multiple exchange rates to avoid an outright devaluation of its currency. The nafex. which acts as a spot rate, was introduced in 2017 to improve dollar liquidity and foster inflows from external business stakeholders that were exciting the country following the economic crisis that occurred in 2016