Oil Price: CBN devalues naira, raises lending rate
November 25, 2014Bassey Udo
Godwin Emefiele, CBN governor
Godwin Emefiele, CBN governor
The Central Bank of Nigeria, CBN, has announced a new official naira-to-dollar exchange rate, forcing down the Nigerian currency by 13 naira, as the country struggles to reshape its fiscal policies in response to dwindling oil price.
The bank devalued the naira at its monetary policy committee, MPC, meeting on Tuesday in Abuja, where it also reviewed Nigeria’s monetary policy rate from 12 per cent to 13 per cent.
The monetary policy rate highlights lending rate for the country’s economy.
The naira will now exchange officially at N168 to a dollar, and no longer N155, the bank said.
The bank also moved the private cash reserve ratio from 15 per cent to 20 per cent, while retaining public sector cash reserve ratio at 75 percent.
The CBN said the decision to lower the value of naira against the dollar is to strengthen the currency.
Mr. Emefiele noted the continued drop in global crude oil prices and reiterated the call on the government and the National Assembly to speed up the process towards the immediate passage of the Petroleum Industry Bill, PIB, which has been pending passage for the past two years.
The committee urged the government to take advantage of the declining oil prices to cut down on subsidies on supply of petroleum products in the 2015 budget, while states and Local Government should step up efforts to boost their internally generated revenue and reduce reliance on revenues from the federation account.
The CBN governor assured that the bank remained committed to maintain financial system stability, while warning against speculative activities that drive inflation.
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Op.. Your source please?

Ok

So that means 250 naira to a dollar in black market .Up u my man Jonathan

aariwa:
So that means 250 naira to a dollar in black market .Up u my man Jonathan

The reason for the devaluation is a fallout from the fall in global oil prices and America's recent resort to shale oil....
It's not 100% an administrative issue...

G

The Nigeria economy like other aspects of our national life in my opinion is a " time bomb " waiting to explode.
We need to go back to the basics.

1. Stop our over dependence on crude oil as a major source of income. This will only make us rely on the volatile opec cartel.
Solution: diversify. Embrace other viable sources of income. I suggest tourism, mining/solid minerals, I.T, entertainment, manufacturing and the service sector.
We should produce more and import less.

We should give the man in America a reason to buy the Naira in exchange for goods and services made in Nigeria. With tourism alone we can achieve this.

2. A country where the government (public sector) is the richest and largest spender is a source of concern. "The public sector is too profitable in Nigeria". Just observe the body language of our elected officials and the struggle for political office.

3. A man who earns N10 and spends N8 on personal day to day expenses will soon go broke. This man also has to take care of his extended family and children.

This is the case with Nigeria we spend about 80% of our income on recurrent expenditure. Then we have very little for projects, infrastructure, savings and investment..
Solution: WE SELECT AND VOTE FOR HONEST LEADERS WHO ARE READY TO MAKE SACRIFICES. Don't worry about the followers they will fall in line.

We need to save this nation called Nigeria

Central bank devalues naira.

http://diarisgodooo.com/forum/discussion/admin/30553/central-bank-of-nigeria-devalues-naira

this man should be sacked. this man is running a tight monetary program. thats why nigerians