The African nation has relinquished control of its currency in a bid to boost investment
Nigeria’s decision to merge its multiple currency exchange rates could stabilize the African nation’s battered economy, but could damage entrenched economic interests that depended on the old system to import vital commodities, economics professor Dahiru Balami told RT on Saturday.
The Nigerian naira hit a record low of 860 per dollar on the black market late last week, a month after the country’s central bank devalued the currency in a bid to close the gap between the country’s official and unofficial exchange rates. By abandoning its artificially lowered rate, the government hoped to boost inward investment and ease a shortage in foreign currencies.
While the move has led to a surge in inflation, Professor Dahiru Balami of the University of Maiduguri told RT that this will likely ease as the market determines the true value of the naira.
Meanwhile, the…
