UPDATE:
Governor of the CBN, Mr. Godwin Emefiele Tuesday officially announced the introduction of a flexible foreign exchange rate regime that would effectively devalue the naira against the United States dollar at the official window.
The governor, who announced this during a briefing at the end of the Monetary Policy Committee (MPC) meeting at the CBN headquarters in Abuja, said he would give details of the flexible forex regime in a few days.
Authoritative sources with knowledge of the development told THEWILL that the CBN would set the new exchange rate at N250 – $1 from its current about N198 – $1 regime.
“The MPC (Monetary Policy Committee) voted unanimously to adopt a flexible exchange rate policy to restore the automatic adjustment properties of the exchange rate,” Emefiele said, adding that the “bank would retain a small window for funding critical transactions” and that “details of operations of the market would be released by the central bank at the appropriate time”.
The Governor also announced that the MPC retained the MPR at 12%, CRR at 22.5% and Liquidity Ration at 30%.
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SAN FRANCISCO, May 24, (THEWILL) – The Central Bank of Nigeria (CBN) will today announce the devaluation of the naira to N250 – $1, authoritative sources familiar the development have said.
The CBN is presently holding a monetary policy committee (MPC) meeting in Abuja.
The apex bank will formally announce the development at the end of Tuesday’s meeting, the sources who asked to remain anonymous, told THEWILL.
Before Tuesday’s decision, the official exchange rate was pegged around N198 – $1 while the parallel market (black market) rate was at N346.
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