The Central Bank of Nigeria had removed the N380 per dollar exchange rate from its website in early May, triggering rumors of a possible devaluation.
Yesterday, the CBN put the Nigeria Autonomous Foreign Exchange (NAFEX) rate on its website, thus devaluing the naira to N410 to the dollar even as the value of naira depreciated to N486 at the parallel market.
In line with the World Bank and the International Monetary Fund who have continuously emphasized on the need for the CBN, to hands off the exchange rate and eliminate the multiple rates in the country David Malpass, President of the World Bank noted that the multiple exchange rates are burdensome for Nigerian citizens. He encouraged the unification of rates to enable money flow in and out of Nigeria with less friction.
CBN Governor, Godwin Emefiele, has confirmed that the change in the official exchange rate to the NAFEX rate was propelled by the fact that government transactions were no longer done using the official exchange rate, but it was gauged against the NAFEX rate.