CBN: We haven’t devalued the Naira

Central Bank of Nigeria to Introduce Flexible Exchange Rate System
The Central Bank of Nigeria (CBN) on Friday night said that the Naira had yet to be devalued contrary to speculations.

The Central Bank Acting Director, Corporate Communications Department, Mr. Isaac Okoroafor, told our correspondent in a telephone interview that the bank had not taken any such decision.

“We have been hearing rumours making the rounds that the Naira had been devalued. I want to tell you now that it is not true. The Naira has not been devalued,” he said and declined to speak further.

There were reports on Friday that President Muhammadu Buhari had  bowed to pressure from the International Monetary Fund to devalue the Naira from the current official rate of N197 to N290 to a dollar.

The IMF had last month while releasing its country report for Nigeria stated that the country’s foreign exchange policy is having negative impact on many businesses.

It insisted in the report that the Naira is currently overvalued noting that if something urgent is not done, it could result in further delays in the much needed foreign direct investments.

In the 88 page report, the agency said a combination of wide fiscal deficits and accommodative monetary policy could further widen the current account deficit.

He stated that was capable of putting more pressure on the country’s exchange rate and external reserves.


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