*Value of naira down by 7.6%
The Central Bank of Nigeria (CBN) has replaced the fixed rate of N379 to a dollar used for official transactions with the Investors and Exporters’ (I&E) window-NAFEX-exchange rate of N410.25/$1, data on the apex bank’s website showed Tuesday.
The move means that the CBN has weakened the naira by 7.6% against the dollar on the official forex market.
However, New Telegraph could not confirm if the apex bank will retain its N393 to a dollar rate for Bureaux De Change(BDCs).
CBN Governor, Mr. Godwin Emefiele, had said last year that the apex bank will pursue exchange rate unification around the I&E window rate.
The World Bank and the International Monetary Fund (IMF) have frequently complained that Nigeria’s multiple currency regime frustrates businesses, stating that the rates should be unified in order to attract investment.
According to analysts, the World Bank has linked approval of a $1.5 billion budget support loan for Nigeria to currency reforms.
The CBN had adopted a multiple exchange rate regime to avoid an outright devaluation of the naira. 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.
The apex bank had on May 14, removed the exchange rate of N379/$1 from its website homepage, thus sparking speculation of an imminent devaluation of the local currency.