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N380 Forex Rate Not Devaluation Of Naira, Says Emefiele

Akinkunmi Obakeye  
Updated March 21, 2020
A file photo of Central Bank of Nigeria Governor, Godwin Emefiele.
A file photo of Central Bank of Nigeria Governor, Godwin Emefiele.

 

Governor of the Central Bank of Nigeria, Mr Godwin Emefiele on Saturday clarified that the recent jump in foreign exchange rate to N380 to a dollar is not a devaluation but an adjustment.

According to Mr Emefiele, the apex bank has the responsibility to see to the adjustment in the Naira, insisting that the bank has no hand in what happens in the Investors, Exporters and End- users window.

The CBN had issued a circular to all banks and Bureau De Change on Friday, advising that the BDC should not sell the Dollar more than N380/1USD to end-users.

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.

He added that the new rate is only an adjustment, but in economics and foreign exchange management language, it is not a devaluation, he maintained.












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