As many await the decision of the CBN as regards the current pressures on the naira, dwindling oil revenue and its attendant effect on the economy, they have gradually been devaluing the Naira. How is this so? Well you will have to look at the daily trade of forex as an inkling into what is happening.
At the close of business yesterday the CBN sold Naira for N162.5 basically breaking their comfort zone of N157 for the second time running in under a week. It first devalued the Naira last week when it sold for N158.41. Here is an excerpt of the trade yesterday
“CBN Offered N200million and sold N198.87million at a marginal rate of N162.5 (effective of N164.13) thus devalued by N4.09. Thus the official band of +/-3% set by the CBN has now been broken.” (Thanks to KOD for this tip).
Here is a chart that best describes exchange rate sales since November.
Exchange rate by the way was sold by the CBN for between N155.7 and N155.76 between January and October 31st this year confirming that the Naira has indeed being devalued by about 4.3% this November alone. Even though the MPC is set to announce its decision on Tuesday, let it be known that devaluation has already been effective via the Retail Dutch Auction System. Any further announcement probably just makes this official or probably widens the mark. The dollar traded in the black market for N182 yesterday.