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FX Structure | FX Mgt Before Now. | FX Mkt | Debt Conversion | Exchange Rate Policy | Movement in Reserves | International Payments | Reserve Management

Exchange Rate Policy

The main objectives of exchange rate policy in Nigeria are to preserve the value of the domestic currency, maintain a favourable external reserves position and ensure external balance without compromising the need for internal balance and the overall goal of macroeconomic stability.

Exchange Rate Movement
The average AFEM intervention rate which closed at N82.33 to a dollar in 1995 appreciated to N81.48 per dollar in 1996. The rate depreciated continuously to N81.98, N84.84 and N91.83 in 1997, 1998 and 1999 respectively. The rates in the bureaux de change showed similar trend. At the bureaux de change, the rate closed at N83.69 to a dollar in 1995, appreciated to N83.15 per dollar in 1996 before depreciating to N99.26 per dollar in 1999. The parallel market premium moved from 1.6 per cent in 1996 to 3.2 per cent in 1999. Meanwhile, the market determined exchange rate at the IFEM has remained within the pre-determined fluctuation bands.

Facts : 1/16/2006
The Cowry:The Cowry has, for centuries, served our people as an important form of currency. In 1860 the following system was in use: 40 Cowries formed a "String"; 50 Strings made a "head" and 10 heads comprised a "bag". In Lagos in 1865 one bag of 20,000 shells was exchanged for one or two English Pounds.
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