The Central Bank of Nigeria (CBN) has devalued the Naira, as it moved the midpoint of the official window of the foreign exchange market from N155 to N168 to one US Dollar. This means that the Naira will exchange between N168 and N174 to the dollar at the foreign exchange market.
The devaluation will increase the volume of Naira available to the federation account and to various levels of government to prosecute their local programmes.
The CBN Monetary Policy Committee also, yesterday, raised the interest rate benchmark from 12 per cent to 13 per cent, thus signalling that interest rates charged by banks will go up further than they are now. The apex bank monetary policy committee further raised the cash reserve requirement for non-government deposits in banks to 20 per cent from its previous 15 per cent position while retaining the cash reserve requirement of 75 per cent for government and their agencies’ deposits in banks.
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