Happy new year 2021 to all our members and visitors! CORONAVIRUS safety tips from Admin! 1. Watch your hands with running water 2. Dont cough in your hands 3. Keep distance from people 4. Stay indoor if neccessary!! Stay safe !!! Dear Members,Do you know that naijacrux is fully programmed to serve you better, Do you know that you can share your favorite post on naijacrux with friends on twitter,facebook, googleplus,myspace and many more! To share post on naijacrux with friends and family on twitter, facebook,googleplus,myspace,and many more, scroll to the down page of the post, Click on the Social Icon You Want To Share On To Share.


Author Topic: Nigeria Central Bank devalues currency  (Read 645 times)

0 Members and 1 Guest are viewing this topic.

Offline internet police

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 1830
  • Karma: +0/-0
  • do not spam this forum
Nigeria Central Bank devalues currency
« on: November 26, 2014, 07:24:23 AM »
Loading...

Nigeria devalued its currency on Tuesday, seeking to stabilise the naira after it hit historic lows against the US dollar, as falling world oil prices hurt the country's foreign reserves.

The naira's street value had already fallen before the surprise moves announced by Central Bank of Nigeria (CBN) Governor Godwin Emefiele.

It had been trading at nearly 180 naira to the dollar, despite the official band of 150-160 naira, and the Central Bank had vowed to continue defending the currency against market pressures.

But Nigeria, which derives roughly 70% of government revenue from oil sales, has had to cope with dwindling foreign reserves amid the oil price slide, making it increasingly tough for the central bank to defend the naira.

"The committee was of the opinion that the economy stood to gain by... allowing some flexibility in the exchange rate," Emefiele said after a Monetary Policy Committee (MPC) meeting.

The central bank has set the new target rate at 168 naira to the dollar, he said.

Economic analyst Bismark Rewane told AFP that the move showed "the independence of the central bank".

"It also shows that oil price movement can drive people to do things which may not be politically popular," he said.

He added that a failure to accept the current real market value of the naira would likely have backfired.

"If they did something that the market didn't like then the naira could have just collapsed," he said.

Falling oil prices

Devaluing the currency, especially three months before a general election, may not be a popular move in President Goodluck Jonathan's inner circle, especially as the Nigerian leader tries to trumpet economic gains as he campaigns for re-election.

But Rewane and other analysts said the CBN had no choice after Nigeria's main crude product slipped to $78 per barrel, after selling at more than $100 just two months ago.

"It was a difficult decision, but one which everyone believes had to be made," said Jide Akintunde, editor of the Financial Nigeria magazine.

Finance Minister Ngozi Ikonjo-Iweala acknowledged earlier this month that falling oil prices had created serious challenges for Africa's top producer, and announced a series of measures including new taxes on luxury items to boost government revenue.

The CBN on Tuesday also raised the rate at which private banks can borrow from the central bank by 100 points, from 12% to 13 %.



 

Soldiers from Chad killed 207 Boko Haram in Nigeria-Chad Soldiers To The Rescue

Started by mastercode

Replies: 0
Views: 1402
Last post February 26, 2015, 02:27:17 AM
by mastercode
Nigeria Police Force To Withdraw Police Officers From Politicians, Others

Started by internet police

Replies: 0
Views: 1438
Last post February 16, 2015, 06:12:57 PM
by internet police
Nigeria Fuel crisis nears end as oil marketers,govt agree to restore fuel supply

Started by internet police

Replies: 0
Views: 1132
Last post May 26, 2015, 04:34:32 PM
by internet police
US Legislature tells Nigeria military-You lack Training&Needs Training, not arms

Started by mastercode

Replies: 0
Views: 1165
Last post August 05, 2015, 05:07:41 PM
by mastercode
100 Easiest Ways To Make Big Money, Save More Money & Spend Less In Nigeria Now!

Started by Tony1980

Replies: 0
Views: 1233
Last post November 03, 2015, 05:55:07 PM
by Tony1980
President Buhari remains Nigeria's president whether home or abroad ? Presidency

Started by yungcrux

Replies: 0
Views: 1134
Last post March 14, 2016, 09:09:17 AM
by yungcrux
Nigeria Celebrate 57th Indepedence , Buhari Visits Maiduguri To Celebrate

Started by Nairaland

Replies: 0
Views: 1380
Last post October 02, 2017, 12:36:37 AM
by Nairaland
Nigeria Police BOSS removes police commissioner amidst killings

Started by bellanaija

Replies: 0
Views: 10379
Last post June 27, 2018, 04:27:43 AM
by bellanaija
President Obama reaffirms readiness to work with Nigeria President elect buhari

Started by admin

Replies: 0
Views: 1208
Last post April 16, 2015, 02:51:33 PM
by admin
United States relaxes arms embargo, begins to send arms to Nigeria

Started by mastercode

Replies: 0
Views: 1373
Last post August 17, 2015, 10:54:35 AM
by mastercode