The steep depreciation, one of the naira’s biggest falls in history, will likely increase the cost of imported petrol in Nigeria, analysts tell The Africa Report.
This came after the Central Bank of Nigeria (CBN) abandoned its longstanding currency peg. The move is hoped to put an end to a rampant black market in Africa’s largest economy.
“The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window,” reads a statement by the CBN.
The move was expected after President Bola Tinubu sacked the central bank governor last Friday, following another policy measure expected to quickly ripple through Nigeria’s economy: the cancellation of the fuel subsidy.
In his inaugural address on 29 May, Tinubu announced the removal of petrol subsidy and also asked the CBN to unify the multiple exchange rates,
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