Stop Panicking, Naira Is Still N461/USD Official Price– CBN Denies Devaluation

The Central Bank of Nigeria has denied devaluing the naira to trade close to the black market rate.

The bank denied the currency devaluation on Thursday in a statement titled, ‘CBN Has Not Devalued The Naira’.

This denial was following fears over the report that the bank has devalued the naira in reaction to a statement made by President Bola Ahmed Tinubu during his inauguration speech.

The apex bank labelled the report report dated June 1. 2023 alleging that it has devalued the naira to N630/$ as false.

The CBN said, “We wish to state categorically that this news report. which in the imagination of the newspaper is exclusive. is replete with outright falsehood and destabilizing innuendos, reflecting potentially willful ignorance of the said medium as to the workings of the Nigerian Foreign Exchange Market.

“For the avoidance of doubt, the exchange rate at the Investors’ & Exporters’ (I&E) window traded this morning (June 1. 2023) at N465/USS1 and has been stable around this rate for a while… It is speculative and calculated at causing panic in the market.”

Checks by THE WHISTLER show that the naira closed at N464.67 per dollar at the Investors’ and Exporters’ FX Window and the highest rate at the spot market was N467 against the dollars.

On the CBN website, the naira closed at N461.6 on Thursday.

Based on the policies proposed by the new administration in their manifesto, the CBN is expected to adjust the naira close to the parallel market rate which traded at N745 on Thursday night.

Tinubu reiterated in his May 29 speech that, “Monetary policy needs thorough housecleaning. 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.

“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.”