Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

CBN reacts to exchange rate policy change, says Naira not “floated”

Bamidele Samuel Adesoji by Bamidele Samuel Adesoji
June 12, 2019
in Business News, Politics
CBN reacts to Naira float
Share on FacebookShare on TwitterShare on Linkedin

The Central Bank of Nigeria (CBN) has finally responded to the report of change in Nigeria’s exchange rate system, dismissing the report that naira has been “floated”.

According to information obtained on the Central Bank’s twitter handle at the early hours of Wednesday, the apex bank stated that “NO change” has been made on Nigeria’s exchange rate structure.

There has been NO change in Nigeria's exchange rate structure.

— Central Bank of Nigeria (@cenbank) June 12, 2019

RelatedPosts

How rise in oil prices will impact exchange rate

Chief claims CBN had to resist powerful forces to stop Naira float

Also, contrary to the central bank’s homepage on Tuesday which stated that the official rate was “market-determined”, the bank quickly reverted back to its original form on Wednesday, by providing details of the official bank exchange rate value.

CBN website on Tuesday, 11th 2019, with a display of “exchange rate is market-determined”
CBN website on Wednesday after purported “Naira Float”

What you should know: Nairametrics first reported on Tuesday that CBN may have accepted to float the exchange rate, judging from the information contained on the Bank’s website. The website has reflected this change since May, leading some analysts to opine that the CBN may have surreptitiously decided to float the naira.

News continues after this ad


As stated earlier, Nigeria operates multiple exchange rates structure, with the Central Bank’s official exchange rate currently selling for N306.95/$1. However, that is just the official bank rate which most Nigerians and businesses do not access.

Read: [CBN signals Naira is floated]

Hence, the parallel market (bureau de change) is the most patronized for individuals, travellers and even businesses. In the parallel market, price is specifically determined by market forces of demand and supply.

News continues after this ad


Meanwhile, the CBN established the Investors’ & Exporters’ FX (I&E) window in 2017, a continued effort to deepen the foreign exchange (FX) market and accommodate all obligations.

A twist in the news on FX:  The Central Bank has quashed report of floating naira, but this may be a signal the CBN is trying to test run the possibility of floating the naira. On Tuesday, a new exchange rate was introduced at the Nigerian Ports. Analysts are of the opinion this may be another FX window in view.

The new exchange rate was reportedly introduced at the Lagos Port and the Nigeria Customs Service (NCS) was said to have commenced immediate implementation. Sources disclosed that all transactions and cargoes that were cleared at the port on Monday were already paying N326 per dollar.

Reactions: Nigerians on Twitter have reacted to the purported move by the Central Bank to have floated the naira.

The retail window still remains to be converged. When we see the retail window which still goes for N335 – N345 and the official one of N307, moving towards the wholesale and NAFEX rates, then we can begin to think of a more liberalised FX market.

— Yinka Ogunnubi (@yinkanubi) June 12, 2019

We can’t be certain about what they will and won’t do anymore. Plus, throwing in billions of dollars every now and then to keep the Naira stable might no longer be a feasible action.

— “It’s Above Me” (@4eyedbee) June 11, 2019

Your statement looks very ambiguous and vague. You say one thing, the market say another. There's wide variance between the official and parallel exchange rate market. And here you're saying the exchange rate structure remain constant. This is practically untrue.

— Dr Nath (@Nathani48195412) June 12, 2019

Lies even customs have change the exchange rate no longer 305 but 326

— omoba Adekunle (@asideywalk) June 12, 2019

Related

Tags: Naira floatNigeria exchange rateNigeria exchange rate structure

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Why inflation must be tamed now by monetary authorities
    • BuyLetLive in capacity expansion, names real estate industry expert, Modupe Agbolahan COO
    • Nigeria’s inflation rate surges to a 17-year high of 19.64% in July 2022

    Follow us on social media:

    Recent News

    Rising global inflation rate, growth in US Economy could trigger further depreciation of the naira

    Why inflation must be tamed now by monetary authorities

    August 15, 2022
    BuyLetLive in capacity expansion, names real estate industry expert, Modupe Agbolahan COO

    BuyLetLive in capacity expansion, names real estate industry expert, Modupe Agbolahan COO

    August 15, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com