In Retreat for Buhari, Nigeria Prepares to Let Naira Weaken
- Africa’s biggest economy is set to introduce dual-rate system
- Central bank leaves policy rate unchanged as economy contracts
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Nigeria’s central bank is preparing to weaken its naira and abandon a currency peg that has starved Africa’s biggest economy of dollars and slowed foreign investment to a trickle. Naira forward contracts soared to record highs as traders added to bets on a weaker currency.
In a retreat for President Muhammadu Buhari, who has resisted calls to let the currency weaken, Central Bank of Nigeria Governor Godwin Emefiele said Tuesday the Abuja-based bank would release details of a “flexible” exchange-rate framework “in the coming days.”