Naira closed at N664 against the dollar at the official market Wednesday after the Central Bank of Nigeria made a first attempt to unify the country’s multiple rates.
The naira, which had long been pegged at N460 against the dollar at the official market, was today allowed to trade at a rate determined by the market for the first time in years.
The currency was initially quoted at between N750 and N755/$ before strengthening to close at N664/$, according to FMDQ data.
Nigeria officially floated its naira currency after years of sticking with a hard peg that spooked investors and drained dollars from the economy.
The development means buyers and sellers of foreign currency in the official FX market are now allowed to quote rates they find comfortable in the FX market, as against previous practice where rates were dictated by the Central Bank of Nigeria (CBN).