Floating has undervalued the naira, according to Bank of America

According to Bank of America analysts, the naira's value has plunged since the closure of the various exchange windows.President Bola Tinubu's administration's much-touted radical foreign exchange reform has caused the naira to shift from an overvalued to an undervalued currency.This is according to analysts at Bank of America (BofA), one of the country's big four banks, in a note to customers dated June 28, 2023. Since the Central Bank of Nigeria (CBN) announced the abolition of multiple exchange rates on June 14, 2023, the naira has fallen by more than 60%, trading for more than 750 to one US dollar, compared to 460 prior to the reform. At the close of business on Friday, June 30, 2023, the naira further dropped against the dollar, exchanging ₦769.25 at the investors and exporters window.