by 
Nigeria has barely outlived the fall that began with the 2014/15 oil price collapse before coronavirus hit its economy. How the Central Bank of Nigeria, CBN got to relieve 5.5% of the official rate of naira is yet to be heard from its spokesperson according to Reuters. Devaluation of the naira by the CBN – from 360.50 per dollar to 380.50 – is set on its plans to unify all exchange rates as well as meet with the IMF conditions for accessing loans. The new rate is made public by the FMDQ OTC Securities Exchange.
Nigeria’s currency-management system is constantly bringing chaos. Analysts, economists and the IMF have pointed out the need for a single rate. A unification of all exchange rate will improve transparency as well as provide precision. Foreign investors will also halt their hesitation if there is unification.
The devaluation of the naira, however, does little to help the country’s economic outlook which is still bleak. Oil prices are still hovering below levels it opened at the beginning of the year 2020. Only a diversification of its foreign exchange sources can assure the country of expanding its declining foreign reserves.
As good as this action sounds for investors, it has been nothing but chaotic. Traders are holding back dollar bills and still waiting to hear from the CBN.
Follow us on Facebook and Twitter and send us stories on contact@africareinvented.com
