Nigeria, Africa’s biggest crude oil exporter, has officially devalued its currency, Naira, against the dollars.
The country’s apex bank, Central Bank of Nigeria (CBN), which announced the devaluation of the official exchange rate for the second time this year, sank Naira value by N20.
Information on the website of the central bank reveals the CBN adjusted the official exchange rate to N380/$1 from N360.1/$1. The adjustment occurred on Thursday August 6th 2020.
This suggest the CBN may have unified the exchange rate in line with the promise made by Godwin Emefiele, the Governor of the Central Bank of Nigeria.
The apex Bank priced the official exchange rate as follows;
Buy- N379 (N360)
Central – N379.5 (N360.5)
Sell – N380 (N360.1)
With these, every N380 in your bank account or in worth of property is less N20 in dollar value.
A property valued at N3.8m before the devaluation is less 200,000 in dollar’s value now.
Every N380 in cash or kind has shed N20 in terms of value to a dollar now.
That is part of what devaluation does. It is used to strengthen the purchasing power for investors – foreign or local – and boost an economy whose account may be showing the red flag (potentials) of sliding into red.