CBN denies devaluation of naira to 630/USD

In response to a recent news report published by the Daily Trust Newspaper on June 1, 2023, titled "CBN Devalues Naira to 630/USD," the Central Bank of Nigeria (CBN) has issued a press release clarifying that no such devaluation has taken place.

In the press release signed Dr. Isa AbdulMumin, the Acting Director of Corporate Communications at the Central Bank of Nigeria, the CBN strongly refutes the claims made in the article, deeming them false and potentially misleading.

The press release emphasised that the information presented by the newspaper is based on unfounded assumptions and lacks an understanding of the Nigerian Foreign Exchange Market's dynamics. The CBN further highlights that the exchange rate at the Investors' & Exporters' (I&E) window stood at ₦465 per US dollar as of the morning of June 1, 2023. This rate has remained stable for a considerable period.

The CBN urges the public to disregard the news report in its entirety, cautioning against undue panic in the market due to speculative information. It also advises media practitioners to verify their facts with the Central Bank of Nigeria before publishing, in order to avoid disseminating misinformation to the public.

Background

On Tuesday, President Tinubu held meetings with key figures in strategic institutions, including Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), at the presidential villa. However, no details were disclosed regarding the outcome of the briefing. It is known, however, that the issue of the exchange rate was discussed during the meeting.

This development comes barely 28 hours after President Bola Ahmed Tinubu unveiled plans to unify the country's exchange rate. Nigeria currently operates multiple exchange rates, which many experts blame for the fall of the naira.

In his innauguration speech, the president said, "Monetary policy needs a thorough housecleaning. The Central Bank must work towards a unified exchange rate."

According to the report by Daily Trust, during the resumption of the weekly bidding for foreign exchange, the CBN sold the spot rate to banks on behalf of their customers at the revised rate of ₦631 to a dollar. The report, which has now been debunked by CBN noted that most bidders were able to secure the full amount they requested.