Nigeria Floats Currency, Naira Plunges as Central Bank Removes Trading Restrictions

Nigeria's central bank liberalized foreign exchange trading and devalued the official Naira rate by more than a third.
The central bank ended its distorted foreign exchange rate to stabilize the currency and attract investors.
The new policy removed restrictions on official forex trading, allowing market forces to determine the exchange rate.
Analysts expect the float to close the gap between official and black market rates, boost confidence and inflows, reduce costs, and ease pressure on the naira.
The free float could achieve the opposite of the central bank's goals and hurt the economy long-term, analysts warn.