A trader changes dollars with naira at a currency exchange store in Lagos, Nigeria in this file photograph dated February 12, 2015. REUTERS/Joe Penney
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In the months prior to the move, it cost as much as 50 percent more to buy the currency on the street than at the central bank rate.The cost to buy the U.S. currency in unregulated trading in Egypt keeps rising even after the central bank devalued the pound three times last year.Nondeliverable forwards predict the naira will drop another 30 percent from the official rate to 288 in 12 months, approaching the black market level that exceeds 300 per dollar.The central bank let the kwanza depreciate 24 percent in 2015 and another 15 percent last month. But that may not be enough, with hawkers selling the currency at a premium of 136 percent to the official rate at 161 Friday.The central bank let the exchange rate slide 13 percent in 2015, compared with drops of 20 percent for the ruble and 46 percent for the tenge.
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