The Central Bank of Nigeria on Tuesday abandoned its naira peg to the dollar in favour of a flexible currency regime, Reuters reports.
The policy is a U-turn designed to boost local manufacturing and exports and stave off a recession.
However CBN Governor Godwin Emefiele sparked confusion by declining to say how the shift from a naira fixed at 197 to the dollar would be implemented.
“The MPC voted unanimously to adopt a flexible exchange rate policy to restore the automatic adjustment properties of the exchange rate,” CBN governor, Godwin Emefiele said.
He added that the central bank would “retain a small window for funding critical transactions”. Again, he sowed confusion by saying details would only be released “at the appropriate time”.
He said the details would be published in a few days, after a Monetary Policy Committee (MPC) meeting in the capital, Abuja