Business Naira Devaluation: President Buhari Backs Flexibility of Foreign Exchange

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President Muhammadu Buhari during the nationwide broadcast this morning, in commemoration of the Democracy day through his weight behind the Central Bank of Nigeria, Monetary Policy Committee decision over the flexibility of the foreign exchange.

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The Central Bank of Nigeria on Tuesday abandoned its naira peg to the dollar in favour of a flexible currency regime.

The Central Bank of Nigeria, CBN, on Tuesday removed the official peg on the naira's exchange rate to the dollar, saying it was adopting a “flexible foreign exchange rate” regime.

"The adoption of a “flexible exchange rate” regime is basically the CBN allowing the Naira to float against the dollar at the interbank, rather than holding on to a fixed peg," Nairametrics say.

In what analysts refer to as “semi-float” the CBN stopped shy of announcing a full float because it still resolved to retain the official exchange rate of N199 which it says it will use for funding “critical transactions.”
 
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