June 20, 2016

Nigerian government devalues naira, reveals official exchange rate as 253 naira to 1 dollar

Nigerian government devalues naira, reveals official exchange rate as 253 naira to 1 dollar

The Federal Government on Monday 20th June 2016, removed the 15-month peg on the official exchange rate of the naira, fixing the official exchange rate at 253 naira per dollar – more than 20 percent increase from the 198 naira to dollar exchange rate the Central Bank has maintained since 2015.

Economic analyst John Ashbourne said:

“The new system should reduce the shortage of FX in the economy and – in the long run – reduce strains in the balance of payments by discouraging imports and boosting export competitiveness,” Capital Economics’  said.

“But the new system certainly does not mark the end of Nigeria’s economic problems.”

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