The Nigerian naira fell off a cliff on Monday morning after the Central Bank of Nigeria removed the currency’s peg to the dollar. The move was an attempt to devalue it in response to tumbling oil prices. As trading opened for the day, the naira dropped more than 4% against the greenback, hitting 280 naira per dollar.
The removal of the naira’s peg against the dollar was announced on Wednesday last week , after long-term speculation about whether or not it may happen. The CBON said that it would move to a “purely market-driven” currency system to help Africa’s biggest economy cope with the effects of the global oil price slump in the past couple of years. Prior to the peg being taken away, the naira broadly traded at around 197 per $1.
Here is the chart showing the naira’s move, which sent the dollar soaring: