After a 5.5% devaluation of the naira to 381 per dollar, trading has been chaotic and Central Bank is the yet to officially announce it. However, the rate seems official according to the FMDQ OTC Securities exchange platform. The chaos isn’t limited to traders, the devaluation and confusion in all naira exchange rates are also a concern for investors.
Going forward, it looks like the exchange rates are going to be unified according to Godwin Emefiele. This will put the country on the same page as the International Monetary Fund and investors.
What you should know about Naira Exchange Rates
- There is one official exchange rate which the government uses for all budgeting and transactions. This official rate also helps the central bank control the prices of import items.
- There is also the Nafex exchange rate which investors and exporters use.
- Small businesses that import raw materials have their own rates.
- Nigerians who want to pay school fees in foreign currencies outside the country use the Bureau de Change rate.
- People who are unable to access any of these official windows would normally use the black market rate.
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