By Hamilton Nwosa(Head, The New Diplomat’s Business and data tracking desk)
Central Bank of Nigeria Governor, Mr Godwin Emefiele on Saturday, clarified that the recent jump in foreign exchange rate to N380 to a dollar is not a devaluation of the naira but an adjustment.
According to Mr Emefiele, the apex bank has the responsibility to ensure to the adjustment in the Naira, insisting that the bank has no hand in what happens in the Investors, Exporters and End- users window. This clarification is coming as the price of Oil continues to crash at the international Oil Market as global Oil price war rages. There are even speculations that the Oil price could go negative, according to CNN energy experts.
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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.
Emefiele said “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.”
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.
The new rate is only an adjustment, but in economics and foreign exchange management language, it is not a devaluation, he added .
