Africa: Nigeria's Move From a Fixed to a Floating Exchange-Rate Policy

30 June 2016

analysis By Lumkile Mondi, University of the Witwatersrand

Africa's largest economy has finally floated its fixed currency exchange rate for the first time in history. The freeing of the Nigerian naira after months of policy debates saw the currency immediately plummet by 40%.

One would have to go back two decades to find parallels. South Africa - then Africa's largest economy - also went through an agonising shift from a fixed exchange rate to a free-floating exchange rate after many permutations.

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