Naira now 168 to US dollar' – CBN

The Central Bank of Nigeria (CBN) has devalued the Naira from N155 to N168 to the US dollar.

The devaluation was announced on Tuesday, November 25, by CBN Governor, Godwin Emefiele in Abuja.

Mr. Emefiele said that the apex bank was forced to devalue the Naira in a bid to address the sources of foreign exchange demand pressure. He said:

“The committee was of the opinion that the economy stood to gain by further tightening of monetary policy stance to anchor inflation expectations; and some flexibility in the exchange rate to stem speculative activities and depletion of reserves.”

“Consequently, the Committee decided as follows; increase the MPR by 100 basis points from 12 to 13 per cent, increase the CRR on private sector deposits by 500 basis points from 15 per cent to 20 per cent with immediate effect; move the midpoint of the official window of the foreign exchange market from N155/US$ to N168/US$,” he added.

The CBN governor also cited declining oil prices as one of the reasons why the devaluation was necessary as it had become difficult for the CBN to continually defend the Naira and sustain the stability of the exchange rate.