Contrary to recent rumors, the Central Bank of Nigeria (CBN) has said that it does not have any imminent plans to initiate a naira policy that would result in a significant depreciation of the dollar exchange rate to ₦1.25 kobo.
On Wednesday, there was an online report in circulation which hinted at the central bank’s contemplation of a potential new foreign exchange (FX) policy.
As stated in report, the policy is slated for November 2023 and will ‘better anchor inflation expectations and make for easier conversion to other major currencies’.
The report also revealed the policy will ‘reverse the tendency for currency substitution’ as well as ‘eliminate higher denomination notes with lower purchasing power’.
As of Tuesday, the official exchange rate for the dollar at Nigeria’s investors’ and exporters’ (I&E) window was set at N742.10.
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In response to the report, the Central Bank of Nigeria (CBN) issued a statement yesterday, categorically denying the accuracy of the publication.
‘The Central Bank of Nigeria would like to bring to your attention that the attached message currently circulating on social media is false and should be disregarded,’ the apex bank wrote in the statement shared on X, formerly Twitter.
Policies designed to reshape the FX market have been steadily introduced by the financial regulator since President Bola Tinubu was inaugurated at the end of May 2023.
Part of the policy initiatives involves lifting restrictions on deposits into domiciliary accounts and harmonizing the various exchange rate systems, which ultimately triggered the devaluation of the naira.