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CBN announces Devaluation of Naira, introduces New ‘Flexible’ Forex Regime

Finally the end of speculations of the official value of naira has come to its abrupt end, as the value of the Nigerian currency was today devalued to the dollar as the Central Bank of Nigeria announced a flexible foreign exchange regime that would see the country abolishing the dual exchange rate regime.

Under the new plan, the official exchange rate of the naira will exist in a "single flexible window," which will likely be determined by market forces.

President Muhammadu Buhari, who is currently on medical vacation in the United Kingdom, had initially opposed any form of devaluation, but his hands appear to have been forced by the necessity of borrowing badly-needed funds to finance a budget hampered by a debilitating shortfall in oil production, SaharaReporters report.

Mr. Emefiele announced a series of measures to manage the new forex policy; these includes the introduction of Forex Primary Dealers, a Futures Market to enable end users to lock down rates and 12 other measures to ensure transparency and stability of the new market.

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