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The Central Bank of Nigeria’s Governor, Godwin chastised critics who insists that Nigeria has multiple exchange rates, calling them “mischievous”. Mr Emefiele was taking questions at the monetary policy communique press briefing held on Tuesday, January 24th . This is despite clear evidence that Nigeria does have multiple official exchange rates, a situation firmly impossed by the CBN.

Mr Emefiele also promised that Nigeria will continue to provide hard currency with priority given to manufacturing industries who need it  to import raw materials and spare parts. He also revealed that the CBN will “from time to time” intervene in the forex market “to ensure that the exchange rate does not go beyond its expectations”, another confirmation that Nigeria is either no longer floating its currency or never did in the first place.

He also revealed today that Nigeria has about $28.9 billion in reserves, the highest since November 2015 when it was $28.4 billion. He did not explain what is the reason for the recent increase in Nigeria’s forex reserves.

Nairametrics reported on Monday that in December 2016, the CBN recorded the highest inflow of forex at about $7.5 billion, the most since September 2015. Largest outflow was in June 2016 at $2.7 billion. Curiously a sum of about $2.39 billion was recorded as “Non-oil inflow other official receipts” and was the highest for a single month since 2005. Some analysts opined this may be one of the reasons why the CBN reserves have spiked of late.

Sources recently reveal to Nairametrics that the sources of the inflow could have come from the AFDB loan. Last February (2016) the AFDB announced plans to lend Nigeria about $1 billion in loans following the endorsements of the 2016 budget.

Nigeria’s exchange rate remains closer to N500/$1 compared to an exchange rate of N305/$1 displayed on the website of the CBN.

 

1 COMMENT

  1. Methinks the boss of the cbn knows what to do if he will,what are the essentials for increasing economic growth in macroeconomic and microeconomic,however I think it’s abut control and freedom.now for how the cbn have lost the battle for a stable or reasonable forex rates visa vis against the dollar or the pound or not and for how long is it 30 yrs 20 yrs.
    The naira have began to get massive pressure since 1999,and a sensible thing is “what do we do” or” how do we do it” an initial analysis said that the main problem is that the supply of forex is not meeting the demand for forex.what do we do arrest those trafficking in currencies,which they did but have It solved the problem for it.it certainly did not.
    The british post office do sells and do quasi-banking even deals in insurances contracts and forex,so do marks and spencer,so do other traveller/tourist agents,the margin or difference is not great of what they sell or buys.SO I THINK THE PROBLEM AND THE SOLUTION ARE SIMPLE.
    Which means the cbn need to do is to increases the supply of forex to affect the market or tell us Nigerians, we (cbn) will not sell or buy forex to anybody in about 5 yrs in future,you buys or sell your forex,,and politician will pressurizes the cbn to give us a political forex rate.
    So far,there have never an new forex strategic aim IT IS THE SAME BULLSHIT TODAY AND TOMMORROW SINCE SAPPING,no plan to offers an alternative sources of forex apart from oil,to meets the nations demand for forex,or you be creative in the one you have oil earning,avoid waste or allows to happen and allow the process of cleaning up happens later

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