CBN Devalues Naira, Raises Lending Rate

Following the nose-diving oil price in the international market, the Central Bank of Nigeria, CBN, has made a move to ensure the Nigerian economy stays afloat.

The price of oil in the market has dwindled and Nigeria has been struggling to adjust to its hard effect on its economy. Oil is country’s major export and source of income.

CBN Governor, Godwin Emefiele, after a meeting of the bank’s Monetary Policy Committee, MPC, held on Tuesday in Abuja, announced the devaluation of the country’s currency, Naira.

Emefiele disclosed that the new official Naira-Dollar exchange rate is now N168 to $1 and no longer N155 to $1.

The nation’s chief banker also announced a new lending rate for Nigeria’s economy. With the new policy, the private cash reserve ratio was moved from 15 per cent to 20 per cent, while the retaining public sector cash reserve ratio at 75 percent.

Meanwhile, the CBN boss assured Nigerians that the bank remains committed in maintaining financial stability in the country.