Nigeria’s apex bank, the Central Bank of Nigeria, CBN, has come out to clarify the misconceived impression in some quarters that the recent pegging of the exchange rate at N380/1D constituted a devaluation of the national currency, the naira.
This was contained in a release by the Governor of the CBN, Mr Godwin Emefiele.
In a news report by Channels Television, Emefiele said that Adjustment of the national currency was one of its chief responsibilities, pointing out that the bank had no control over market forces.
According to Emefiele:
The Central Bank of Nigeria has the responsibility to see to the adjustment in the currency; what you have seen is an adjustment in currency and we have been accused that we have a hand, we don’t have a hand, Emefiele said.
We allow the I&E window, which is the dominant market to dictate the exchange rate in the market.
At this time the CBN provides FX in that market at 380, anyone who has higher than the 380 can go ahead, but it should be available in the market to fund the domestic market.
The governor further added that the new rate is only an adjustment, but in economics and foreign exchange management language, it is not a devaluation.
Agenda Watchdog recalls that the apex bank had in a communique to all banks and Bureau De Changes on Friday, directed that the BDC to end-user sales of the Dollar should not exceed N380/1USD.
It is expected that the clarification has shed more light on some knotty aspects of the earlier directive by the CBN which was seen in some quarters as a formal devaluation of the national currency.
*** Olivia Isibor