According to a report from Daily Trust, the Naira has been devalued by the Central Bank of Nigeria (CBN) from N461.6 to N631 per dollar at the Importers and Exporters (I&E) window.
This decision was made just two days after President Bola Ahmed Tinubu announced the government’s intention to unify the country’s exchange rate in order to stimulate the economy.
The president emphasized the need for a unified exchange rate as part of a larger monetary policy overhaul, redirecting funds from arbitrage to productive investments in areas such as infrastructure, equipment, and job creation.
The president said in his inaugural speech;
“Monetary policy needs a thorough house cleaning. 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.”
Consequently, during the weekly bidding for foreign exchange, the CBN sold the spot rate to banks on behalf of their customers at N631 per dollar, with most bidders receiving the full amount they requested.
As a result of this devaluation, prices in the parallel market have also experienced a downward trend.
Daily Trust noted that Abuja and Kano, the prices dropped from N750 per dollar in the early hours of the previous day to N745 per dollar by evening, as observed by the publication.
The Central Bank of Nigeria, however, urged the public to disregard these reports, adding that a comprehensive statement clarifying the monetary policy will be released in due time.
CBN did not devalue the Naira! pic.twitter.com/GDz8uXVVwQ
— Central Bank of Nigeria (@cenbank) June 1, 2023
The full statement from CBN reads;
“The attention of the Central Bank of Nigeria (CBN) has been drawn to a news report by Daily Trust Newspaper of June 1, 2023, titled “CBN Devalues Naira To 630/$1”.
We wish to state categorically that this news report, which in the imagination of the newspaper is exclusive, is replete with outright FALSEHOODS 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 465/US$1 and has been stable around this rate for a while.
The public is hereby advised to ignore the news report by Daily Trust in its entirety, as it is speculative and calculated at causing panic in the market.
Media practitioners are advised to verify their facts from the Central Bank of Nigeria before publishing in order not to misinform the public.”