The central bank of Nigeria permits the naira to fall 2% to a historic low.

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On Wednesday, the naira was permitted to reach a record low on the official market by around 2%, although the rate of the currency remained higher than where it trades at central bank auctions and on the black market.

Nigeria is attempting to standardize the several currency rates it uses to maintain an artificially strong naira. Last week, the country’s newly elected president, Bola Tinubu, informed members of his ruling party that there would no longer be different currency rates.

From Tuesday’s trading of about 465 naira, the naira dropped as low as 475 naira before rising to 466 naira.

To prevent a significant devaluation, the central bank has been gradually changing the value of the naira on the official market.

Reuters.

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