Top Stories
CBN speaks on ‘crashing exchange rate to N1.25/$1’
The Central Bank of Nigeria (CBN) has debunked claims that it would crash the exchange rate to N1.25/$1.
Reports had circulated online claiming that the apex bank would “introduce a new naira policy by November 2023” which would see the foreign exchange rate to be $1=N1.25.
Debunking the news via a tweet on X-app, the apex bank attached screenshots of the report tagged “fake news” and noted that “the attached message currently circulating on social media is false and should be disregarded.”
Foreign Exchange Rate Reforms
The Central Bank of Nigeria had implemented various policies since President Bola Tinubu was inaugurated on May 29th 2023.
In June 2023, the apex bank gave commercial banks and dealers in the forex market the green light to sell forex freely which is at a market-determined rate.
This was in line with the promise of President Bola Tinubu to unify the multiple exchange rate in the market.
CBN had also announced the unification of all segments of the forex market collapsing all windows into one.
This was part of a series of immediate changes to operations in the Nigerian Foreign Exchange (FX) Market, in a bid to improve liquidity and stability.
The devaluation of the naira has pushed the price of the dollar in the investors’ and exporters’ (I&E) window of the official market from N461.50/$1 on June 13, to N742.10/$1 as of Tuesday while the rate at the parallel market is N927/$1 as at today.
ICYMI
Central Bank of Nigeria (CBN) had issued a new circular stopping banks from recklessly spending gains made from forex revaluation.
This was done in a bid to bolster the Nigerian banking sector amid volatile foreign exchange (FX) rates.
Nigerian banks mostly reported massive profits in the half-year results mostly arising from the depreciation of the naira following the unification of exchange rate windows.
The depreciation increased the balance sheet of the banks in naira based on their forex holdings. The apex bank fears that banks could be tempted to spend the profits making them vulnerable if the exchange rate strengthens
- News20 hours ago
Breaking: Tinubu Makes Fresh Appointment
- News18 hours ago
#USElection2024 Live Updates: Trump Vs Harris…Latest Results…Latest Polls
- Top Stories20 hours ago
Hardship: We’ll No Longer Watch Anyone Insult Tinubu – Doyin Okupe Vows
- Top Stories20 hours ago
#USElection2024: Trump, Harris close campaign in swing states on eve of deadlocked election
- Top Stories12 hours ago
Digital Transformation: Maida, Kekere-Ekun Speak At NCC’s Annual Workshop for Judges in Lagos
- Top Stories14 hours ago
Breaking: House Of Reps Finance Committee Visits FIRS
- Politics20 hours ago
‘He’s With Us’, EFCC Confirms Ex-Gov Okowa’s Arrest Over N1.3trn Diversion
- Entertainment20 hours ago
Prince Harry and Meghan Markle pursue separate projects