Central Bank of Nigeria on Tuesday in Abuja
devalued the Naira by N13.
CBN says the move is part of efforts to
strengthen the nation’s economy.
CBN Governor, Mr Godwin Emefiele, disclosed the
devaluation to newsmen after a meeting of the
Monetary Policy Committee.
Emefiele explained that under the new
arrangement, the Naira would now exchange for
N168 instead of the old official rate of N155 to
one US dollar.
He said the meeting also decided to increase the
Monetary Policy Rate by 100 basis point from 12
per cent to 13 per cent.
The MPR is the rate at which banks borrow from
the CBN to cover their immediate cash shortfalls.
The higher the cost of such borrowing, the higher
the rate at which banks advance credit to
customers.
Emefiele noted that there was an increase in
Cash Reserve Ratio on private sector deposits by
500 basis point from 15 per cent to 20 per cent.
The CRR is a monetary tool used to either call
up excess liquidity or release funds needed for
the growth of the economy as situation
demands.
He added that the public sector CRR would be
retained at the current level of 75 per cent and
the symmetric corridor of plus or minus 200
basis points around the MPR will be maintained.
“The public sector should be retained at 75 per
cent and foreign exchange trading position
should also be retained at one per cent,’’
Emefiele said.
The CBN governor explained that the decision to
lower the value of the Naira against the dollar
was to strengthen the currency.

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