In 1981, one could get less than N6.1 million in exchange for $10 million. Then, a dollar was equivalent to 61 kobo. But four decades later, the naira has lost 99.8 per cent of its value against the greenback, going by how N4.1 billion now exchanges for $10 million. This is perhaps the steepest fall any currency has witnessed.
In the intervening years, the naira has witnessed dozens of devaluations, most of which were implemented with the hope of achieving fair value for the naira, which interestingly has suffered a fate common to commodity currencies across the globe. In March last year, the Central Bank of Nigeria (CBN) adjusted the official rate from N307/$ to N360/$. Subsequently, in the same year, the exchange rate was lowered to N380/$. That rate subsisted till this year when the CBN’s official rate was replaced with the Investors’ and Exporters’ (I & E) Window rate – a creation of the currency crisis itself.
Managing a commodity currency anywhere in the world, comes…
Source: Guardian Newspaper