Nigeria’s naira eases 6.2% against dollar on official window

The recent, pandemic’s effect on Nigeria’s economy has led to Nigeria’s naira easing by 6.2% against the U.S. dollar on the official market on Wednesday after the government moved to converge its multiple exchange rate regime, traders said.

The naira opened for trade at 385 per dollar on the market, supported by the central bank. It closed at 361 at its previous close, data from Refinitiv Eikon showed.

Traders said the government wants to generate more naira in exchange for dollars it earns from the sale of crude oil, Nigeria’s main export and sought to converge the currency to the over-the-counter spot market, where its trades more weakly.

The naira has been hitting new lows on the black and over-the-counter spot markets since March after the central bank adjusted its official rate, implying a 15% devaluation.

Central Bank is yet to respond to this.

Ayooluwa Joshua