Flash drop: Nigerian Senate on Wednesday said it would invite the Governor of the Central Bank of Nigeria, Godwin Emefiele, over rising inflation and naira devaluation which have made lives difficult for Nigerians.
The senators lamented that the exchange rate of the US dollar to naira had now risen to N700 which was described as very sad. They, therefore, called for immediate attention.
Devaluation is an official reduction of the value of a domestic currency to the value of the foreign currency, particularly those currencies accepted internationally for transactions like the US dollars.
Devaluation is a deliberate action of the monetary authority. It can be reversed to appreciation through the same market forces when an economy improves.
A major issue of concern and challenge for most individuals and companies is the widespread surge in prices of goods and services due to this devaluation.