Exchange Rate in Nigeria

Nigeria Exchange Rate | Economic News & Forecasts

Nigeria - Exchange Rate

Central Bank weakens currency again in July

The Central Bank of Nigeria (CBN) weakened the official exchange rate for the second time on 7 July amid pressure from international lenders and investors to unify its multiple exchange rates. The move came on the heels of a hefty 15% adjustment in March when the currency faced tremendous pressure from the collapse in global oil prices, with the CBN bringing the rate down to NGN 361 per USD. On 7 July, the official exchange rate was weakened by 5.3% to NGN 381 per USD; meanwhile, the NAFEX exchange rate—used by both investors and exporters and which acts as a spot-rate for the naira—traded at NGN 388 per USD that same day, where it has hovered for the past couple of months on the back of the oil price recovery.

The devaluation comes after Governor Godwin Emefiele’s remarks in June that the CBN was moving towards unifying the official rate closer to NAFEX in view of improving transparency of its FX-management regime. The decision also comes against the backdrop of President Muhammadu Buhari’s pledge of converging the rates in view of securing financing from multilateral lenders to cover the large balance of payment needs and budget shortfalls arising from the plunge in oil prices. The country already secured a USD 3.4 billion loan from the IMF in April and the latest adjustment by the CNB bodes well for unlocking additional financing from the World Bank, with whom authorities are currently in talks with.

All in all, the move is a positive step towards merging the country’s multiple exchange rates. Analysts have long maintained the view that this regime creates confusion and hinders investment. Nevertheless, the pace at which these changes have been made has been rather slow, signaling that the path for a single and flexible exchange rate remains long.

FocusEconomics panelists see the NAFEX rate ending 2020 at 403 per USD.

Nigeria - Exchange Rate Data

2015   2016   2017   2018   2019  
Exchange Rate (vs USD)196.5  304.5  305.5  306.5  307.0  

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Nigeria Exchange Rate Chart


Nigeria Exchange Rate
Note: Exchange rate, NGN per USD (eop).
Source: Thomson Reuteurs

Nigeria Facts

Value Change Date
Bond Yield11.100.0 %Dec 31
Exchange Rate306.53.08 %Jan 01
Stock Market0.10.0 %Jan 07

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