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Nigeria has Again Moved the Official Exchange Rate Closer to the Parallel Market Rate

The country’s central bank and other monetary authorities are implementing new measures to quell the rapid depreciation of the naira currency against the dollar and attract foreign investors. Over the past two weeks, they have undertaken a second devaluation of the currency, reviewed regulations for international money transfer operators (IMTOs) and cautioned commercial banks against hoarding dollars. Nigeria’s supply of dollars from oil receipts has lagged demand from businesses in recent years, driving attention to the informal currency market on street corners. A backlog of $7 billion in unpaid obligations, according to central bank governor Yemi Cardoso, has seen foreign businesses such as international airlines struggle to recoup earnings from the country.