Nigerian Naira’s Nightmare. On Friday, June 17, 2016, the Central Bank of Nigeria (CBN) abandoned the Nigerian naira’s (NGN or N) fixed exchange rate and allowed the currency to float. Previously fixed against the U.S. dollar at NGN 196.50 = 1.00 USD, USD, the naira closed at NGN 279.50/USD on Monday, June 20, the first day of trading following the float. The naira quickly floated (sunk) to NGN 324.50/USD by August 18. Similarly, the naira fell from NGN 221.2001 = 1.00 EUR to NGN 316.7294/EUR on June 20, and NGN 347.7721/EUR on August 18.

a. What was the percentage change in the value of the Nigerian naira versus the dollar the first trading day?

b. What was the percentage change in the value of the naira versus the dollar by August 18, 2016?

c. What was the percentage change in the value of the Nigerian naira versus the euro the first trading day?

d. What was the percentage change in the value of the naira versus the euro by August 18, 2016?