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Central Bank of Nigeria Devalues Official Exchange Rate by 5.5%

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The Nigerian central bank has devalued its official exchange rate by 5.5% to 381 naira to the dollar from 360 naira, according to data on the website of FMDQ OTC Securities Exchange, the Lagos-based platform that oversees foreign-exchange trading.

The bank has not issued a statement about this and calls to the spokesman went unanswered.

The currency depreciation comes after Governor Godwin Emefiele announced last month that the bank plans to unify its multiple exchange rates to improve the transparency of its currency-management system.

The central bank also devalued the currency in March, when it adjusted the official peg against the dollar to 360 naira from 307. However, Emefiele said at the time the move was “an adjustment of price and not a devaluation of the currency.” On its website, the quoted rate is still 360 naira to the dollar but that was last updated on July 3.

Investors and the International Monetary Fund have long called for Nigeria to merge its multiple exchange rates, saying the absence of a single rate creates confusion and deters foreign investment.

— With assistance by Alonso Soto

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