Nigeria lets market set currency exchange rate to stabilize economy, woo investors

By CHINEDU ASADU
Associated Press

ABUJA, Nigeria (AP) — Nigeria’s central bank has ended its distorted foreign exchange rate, a move the new government in Africa’s biggest economy hopes will help woo investors and stabilize the local currency. The announcement Wednesday from the Central Bank of Nigeria led to a record fall for the naira. Analysts say that by letting the exchange rate to be determined by market forces, foreign investments would increase in Nigeria and help revive an ailing economy. It will also make the price of imported goods more expensive, which could affect many in a country heavily reliant on imports.