BREAKING: CBN Devalues Naira, Fixes New Exchange Rate To Dollar

CBN has fixed new exchange rate for Naira to dollar.

Newsone reports that the Central Bank of Nigeria (CBN) has devalued the naira by 7.6% against the dollar in what has been seen as a move to migrate toward a single exchange-rate system for the local currency.

This online news platform understands that the CBN 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, according to data on its website on Tuesday, May 25, 2021.

Newsone reports that the unification of the two rates will improve the Nigeria’s currency-management system and help meet the conditions of the International Monetary Fund and investors for transparency.

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Before now, Nigeria had adopted multiple exchange rate regime to avoid an outright devaluation of the naira.

Meanwhile, the 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.