Naira Plunges as Nigeria Lets Currency Break Through Control
Nigeria’s central bank allowed the naira to slump to a record low as officials look set to phase out currency controls that have distorted Africa’s biggest economy for years.
The naira slid 29% to 664 per dollar at the close in Lagos, according to FMDQ, a local exchange operator. The Central Bank of Nigeria earlier fixed the rate it sells dollars to exporters and investors at 610.20, a devaluation of 22% from Tuesday’s price.
The stock market and government bonds surged as investors welcomed the prospect for the latest in a series of reforms by President Bola Tinubu.
A discussion on letting the currency trade more freely is ongoing at the central bank, a senior banking official told Bloomberg on Wednesday, asking not to be named because the deliberations were private.
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