The country’s apex bank, the central bank has further devalued the naira by 7.6% against the dollar the country aims towards a single exchange-rate system for the local currency.
In the latest change on The Central Bank’s website, the apex bank had replaced the fixed rate of 379 naira to a dollar used for official transactions with the nafex or the I&E exchange rate of 410.25 naira per dollar.
With the unification of the two rates, this will improve the country’s currency-management system and help meet the conditions of the International Monetary Fund and investors for transparency.
The country had adopted a multiple exchange rate system to avoid an outright devaluation of the naira.
Nafex which acts as a spot rate was introduced in 2017 to improve dollar liquidity and encourage inflows from foreign investors that were exiting the country following the 2016 economic crisis