The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has reportedly told investors that the country’s currency is overvalued by 10%. The governor’s remarks, which have been confirmed by two unnamed sources, suggest that the central bank is planning to devalue the naira again.

As previously reported by Bitcoin.com News, in May 2021, authorities in Nigeria allowed the naira’s exchange rate against the US dollar to drop from a fixed rate of 381 per dollar to the current official rate of 410. This devaluation, which was the third one in less than 18 months, briefly narrowed the gap between the official and the parallel market rate. However, at the time of writing, this gap had widened again.

Nevertheless, as a Reuters report explains, the CBN chief is now expecting to see this gap shrink. According to the report, the governor said: “The spot naira rate of 410-412 per dollar would eventually weaken by 5% to 10%.” Weakening the naira by between 5% to 10% means the CBN is expecting the spot rate of the naira to fluctuate between 430 and 450. Still, this new CBN target remains below the current parallel market exchange rate of 500 for every dollar.

The report also touches on why Emefiele, who has previously defended the naira’s overvalued exchange rate, is now warming up to the idea of devaluing the local currency. According to the report, another devaluation of the naira may be linked to the World Bank’s call for the unification of Nigeria’s multiple exchange rates. The global lending institution reportedly wants to see “closer parity before the release of a much-needed $1.5 billion budget support loan.”

In addition to the World Bank’s demands, the CBN has faced increased pressure to devalue the naira by businesses that are failing to access the resource via the official channels. This, in turn, leaves the parallel market as their only source for foreign currency.

https://news.bitcoin.com/nigerian-currency-overvalued-by-10-says-central-bank-governor/

This our CBN governor wants to really murder the Naira this time...

Devalue Naira and make everyone in Nigeria a millionaire. If that's not fighting poverty, I don't know what is


Let me see how they will say we're the poverty headquarters of the world when all of us are millionaires and billionaires.


People like myndd44 will be trillionaire

Over valued ?

$1=N1,000 loading ...

It's more than 50% sir ...every person with economics (macro ) knowledge knows the true value of naira is around 750 as of today


We told buhari not to defend as of 2015 true value was around 500 that we are today but we chose to lie to ourselves ...wasted reserves

Now we would have had enough reserves at least $150 billion and naira would have been 450 max as we speak but buhari keep messing up

They have only been lying to themselves.See,where the voodoo economics of the government is leading this country into.Devaluing the Nigeria will make it continue to be worthless.

This is wonderful, more positive news coming from our next level government. From all of us at vulturebbqrillz we support the devaluation of the currency and we thank our darling daddy for achieving another milestone in his tenure. We BMC zombies will not be affected by it because once we present our Zombie ID card the economy obeys us.
Sai Baba
Sai Next Level