#DailyChart: Despite Fuel Scarcity Locally, Nigeria Clinches Top Spot Among Oil Producers in Africa
CBN Devalues Naira To Adopt Single Exchange Rate System
The Central Bank of Nigeria (CBN) has devalued the naira by 7.6% against the dollar in order to migrate toward a single exchange-rate system for the local currency.
The apex bank replaced the fixed rate of N379/$1 used for official transactions with the more flexible Nafex, also known as the investors and exporters exchange rate, which averages N410.25/$1 this year, according to data on its website on Tuesday.

“We found out that we were no longer dealing in this so-called CBN official rate for transactions,” Governor Godwin Emefiele told reporters during the monetary policy briefing earlier on Tuesday. “We are still running a managed-float, we are monitoring the market and seeing what is happening for us to ensure that the right things are happening for the good of the Nigerian economy.”
A Bloomberg survey showed that CBN held an interest rate at 11.5% in line with the median estimate.
Nigeria adopted multiple exchange-rate schemes to avoid an outright devaluation of the naira. This would keep a stronger pegged rate for official transactions and weaker exchange for non-government related transactions.
This currency management system has been criticized by the International Monetary Fund, pointing to the reason the World Bank held back a $1.5 billion loan in a bid to push for more foreign exchange reforms.