Nigeria took several exchanges to prevent the actual destruction of the naira, but the plan criticized the IMF.
The Central Bank of Nigeria denounced the naira by 7.6% against the dollar because the largest oil producers in Africa are moving to a single currency exchange system.
The Central Bank of Nigeria based in Abuja converted $ 379 naira into a highly traded dollar and flexible nafex, also known as foreign exchange transactions, which amounted to 410.25 naira per dollar this year, according to data on its website Tuesday.
“We have realized that we are no longer doing anything for the so-called CBN vendor,” Governor Godwin Emefiele told reporters at a financial conference Tuesday. “We are still moving forward, monitoring the market and seeing what is going on to ensure that the right things are done in the best interests of the Nigerian economy.”
The bank had an interest rate of 11.5% based on a median comparison with Bloomberg research.
“The inclusion of these cases is an acceptable development because the external fragmentation market has created confusion and a source of arbitrage,” Neville Mandimika, a Johannesburg economist at Rand Merchant Bank, said via email.
Nigeria has taken a number of exchanges to prevent the real destruction of the naira by keeping strong money in civil cases and exchanging less for the non-government. The monetary policy has been criticized by the International Monetary Fund, and the World Bank has set aside $ 1.5 billion in debt to force foreign exchange reserves.
Nafex, which serves as an interest rate broker, was launched in 2017 to reduce the volume of dollars and boost foreign exchange for foreign investors following the 2016 financial crisis. West Africa suffered a severe financial crisis last year following the Covid-19 epidemic. brought oil prices, which forced them to reduce the local group twice.
While nonprofits account for less than 10% of the country’s total economy, they account for almost all foreign currency and half government revenue.
“The key to the market is to allow for current changes in the prices of investors and exporters to reduce the spread between Nafex and the corresponding market,” said Chapel Hill Denham researcher Omotola Abimbola by telephone.
The recent changes to the central bank are expected to boost confidence in decision-making, but recovery at work may not be immediate as women wait for more money, say Simon Kitchen and Mohamed Abu Basha at EFG Hermes in Cairo.