Biggest Devaluation in Six Years May Be on the Cards for Nigerian Currency
- Analysts expect steep markdown in 2023, survey shows
- Currency has weakened 4.5% against the dollar this year
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Africa’s largest economy is expected to devalue its currency after elections in February by the steepest margin in six years to align it with market perceptions, according to a survey of investors and analysts.
Nigeria operates a multiple exchange regime dominated by a tightly controlled official rate, cutting off access to many businesses and individuals, which in turn drives demand to the unauthorized black market. This has led the spread between the managed and parallel markets to significantly widen. The difference is almost 77%.