CBN denies devaluing Naira to 630 to USD
The Central Bank of Nigeria (CBN) on Thursday denied a report that it devalued the Naira to N631 to the dollar.
CBN tweeted a graphical image with “fake news” to debunk a report by Daily Trust suggesting that it devalued the Naira.
Daily Trust reported that at the resumption of the weekly bidding for foreign exchange, the CBN sold the spot rate to banks on behalf of their customers at N631 to a dollar.
The devaluation, according to the report, comes within 24 hours after the dollar had sold for N461.6 at the Importers and Exporters (I&E) window on Tuesday. CBN said it’s fake news.
President Bola Tinubu on Wednesday met with the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, at the presidential villa.
At the end of the meeting, neither the presidency nor Emefiele disclosed the outcome of the briefing.
It was, however, gathered that the issue of the exchange rate was discussed at the meeting.
Tinubu had declared his government’s decision to unify the exchange rate in Nigeria.
The president in his inaugural speech at the Eagle Square in Abuja on Monday after he was sworn in as Nigeria’s 16th President said the CBN needs to replace the previous multiple exchange rate regime implemented during the administration of his predecessor, Muhammadu Buhari.
The president noted that the Naira redesign policy implemented by the CBN did not consider the number of unbanked Nigerians.
“Monetary policy needs thorough house cleansing. The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy,” Tinubu said.
“Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level. Whatever merits it had in concept, the currency swap was too harshly applied by the CBN given the number of unbanked Nigerians.
“The policy shall be reviewed. In the meantime, my administration will treat both currencies as legal tender.”