Naira Weakens As CBN Retains Benchmark Rate


The Naira on Tuesday weakened against the dollar shortly after the Central Bank of Nigeria retained its Monetary Policy Rate and endorsed the crackdown on parallel market traders by security operatives.

The Nigerian currency lost N5 to exchange at N470 to the dollar at the parallel market from N465 it traded on Monday; while the Pound Sterling and the Euro closed at N565 and N495, respectively.

At the Bureau De Change (BDC) window, the naira was sold at N390, CBN controlled rate, while the Pound Sterling and the Euro closed at N562 and N500, respectively.

However, trading at the interbank market showed that the naira remained stable at N305.00 to a dollar.

The MPC decision

The CBN rose from its bi-monthly Monetary Policy Committee (MPC) meeting, retaining the Monetary Policy Ratio (MPR) at 14 per cent alongside other policy parameters.

The apex bank governor Godwin Emefiele announced the decision of the committee at the end of a two-day meeting held on Tuesday at the bank’s headquarters in Abuja.

He explained that all the 10 members that attended the meeting agreed to maintain the current monetary policy stance.

Apart from the MPR, the governor said the committee also voted to retain the Cash Reserves Ratio at 22.5 per cent.

The committee also retained the Liquidity Ratio, which was left at 30 per cent; and the Asymmetric Window, which was left at +200 and -500 basis points around the MPR.

Endorses crackdown on illegal operators

The CBN also charged security agents to sustain their checks on the activities of illegal foreign exchange operators in order to bring sanity to that segment of the market.

“The Committee reiterates that the extant foreign exchange regulation outlaws the trafficking of currency on the streets as some unlicensed operators currently do,’’ the CBN said.

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John Andah is a fine-grained journalist. He has been a member of the fourth estate for a decade. He loves the smell of a good lead, and has a penchant for finding out something nobody else knows. John is Senior Assistant Editor at Concise News.

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