Nigerian Currency Devaluation


The Nigerian Central Bank announced that it would, effective June 20, abandon its fixed rate for the naira against the U.S. dollar and allow it to trade freely. The move comes as the commodity crisis settled into the oil exporter and the black market for dollars  emerged earlier this year. Africa economic and investment advisor Aubrey Hruby had the following reaction:    “This announcement has been a long time coming and could help move Nigeria onto the road to economic recovery. A bold step, devaluation will give investors a solid rate at which to return to the Nigerian market and give future transactions a baseline from which to start. After a short period of struggle and recovery by the Nigerian people, investment will return, the market will correct years of mismanagement and Nigeria can resume its place as an economic powerhouse in Africa.” Aubrey Hruby is a Senior Fellow at the Atlantic Council, winner of the 2016 Axiom Award for Best Business Book, with co-author Jake Bright, for The Next Africa. She is a long-time advisor to investors and companies doing business in African markets. She is also a Managing Partner of Noveni Advisors, and a co-founder of the Africa Expert Network (AXN).