CBN moves to harmonise exchange rates

—Removes N379/$1 rate from website
The Central Bank of Nigeria (CBN) has commenced the process of harmonising the country’s exchange rates with the removal of N379/$1 official rate from its website.

The CBN’s move indicates a gradual harmonisation of the exchange rate and tactical devaluation of the naira.

The policy shift also confirmed longtime speculation that the Nigerian Autonomous Foreign Exchange Rate (NAFEX) also called the Investors’ and Exporters’ Forex Window is the default official rate.

The CBN had last November devalued the naira by N6/$1 across all exchange rate lines in line with the exchange rate unification agenda of the apex bank as recommended by the International Monetary Fund (IMF) and World Bank.

The naira exchanges at N411.25/$1 on the Investors and Exporters (I&E) Window after the CBN extended its ‘Naira for Dollar’ policy to attract more foreign capital to the economy.

At the parallel market, the local currency exchanged at N484/$1, weaker than N483/$1 it exchanged on Thursday.

CBN governor, Godwin Emefiele, said that in Nigeria, like other emerging market countries and countries reliant on oil exports, the decline in crude oil earnings, as well as the retreat by foreign portfolio investors, significantly affected the supply of foreign exchange into Nigeria.

Speaking at the 55th Annual Bankers’ Dinner in Lagos, the CBN boss said the need to adjust for the decrease in supply of foreign exchange led to the depreciation of the naira.

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