http://www.premiumtimesng.com/business/171875-breaking-dwindling-oil-price-cbn-devalues-naira-raises-lending-rate.html

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.

na lie

Mologi:
na lie

Which one be lie for all wetin him talk?

Good decision, nice timing to serve as a cushion effect on whatever outcome OPEC decide to create on Thursday. But raising MPR.. With all the losses in the Capital market. Hmmm..

Any simple explanation? Cos I don't understand this at all!!!

Samchelsea:
Any simple explanation? Cos I don't understand this at all!!!

My Personal Explanation:

•MPR (Monetary Policy Rate or Bank Lending rate) has increased by a percentage to improve liquidity and create a good reserve

•Devaluing the Naira to that price means changing to dollar now would be a loss at the moment, and as such, you will be 'forced' to stick to Naira

•Cutting down subsidy = Increase in Fuel Price come 2015

•CBN is trying its best to stabilise the economy as we are now overshooting our budget

•Increase in Private CRR (Cash Reserve Ratio) = More savings, less spending, more reserve, more liquidity.

I just dey learn too.

So What will be the value of a dollar in the black market?

davide470:
My Personal Explanation:

•MPR (Monetary Policy Rate or Bank Lending rate) has increased by a percentage to improve liquidity and create a good reserve

•Devaluing the Naira to that price means changing to dollar now would be a loss at the moment, and as such, you will be 'forced' to stick to Naira

•Cutting down subsidy = Increase in Fuel Price come 2015

•CBN is trying its best to stabilise the economy as we are now overshooting our budget

•Increase in Private CRR (Cash Reserve Ratio) = More savings, less spending, more reserve, more liquidity.

I just dey learn too.

ok thanks maybe you can do a better job than the current CBN boss