The Naira, the national currency of Nigeria, experienced an adjustment in the exchange rate, better a devaluation of 6 Naira to balance with the value of the dollar, the American currency.

The Central Bank of Nigeria (CBN) last Friday devalued the Naira against the dollar. The devaluation of the Naira brought the local currency closer to the CBN exchange rate unification program as recommended by the International Monetary Fund (IMF) and the World Bank.

The new rates peg the sale of dollars to banks at 388 Naira per dollar. Banks will sell the dollar to the CBN at 389 Naira to the dollar, down from the previous rate of 383 Naira to the dollar. This devaluation brings the Naira closer to the exchange rate unification policy recommended by the IMF and the World Bank.

The CBN memo signed by Dr. Ozoemena Nnaji, the Head of Commerce and Trade Department of the bank said authorized dealers, Bureau de Change operators and service providers are requested to add 6 Naira to all the rates.

The devaluation of the Naira stems from declining foreign exchange reserves and declining dollar revenue from Nigeria. This situation is due to the decline in crude oil prices.

The price of crude oil fell to $48.17 a barrel, one of the lowest prices in nearly three years. Nigeria derives more than 95% of its foreign exchange earnings from crude oil sales.