Naira Scarcity : Latest CBN News Today 2nd June 2023
In the most recent update from the Central Bank of Nigeria (CBN) on 2nd June 2023, there are growing concerns about the scarcity of the naira, naira devaluation. President Tinubu has expressed worry regarding the redesign of the currency and its potential effects on its availability. The CBN’s announcement sheds light on the current situation of the currency and its potential ramifications for the economy. Please stay tuned for further updates as this matter unfolds.
President Tinubu Promises To Revisit Emefiele’s Naira Redesign Policy
President Bola Ahmed Tinubu announced at the Eagles Square in Abuja, the Federal Capital Territory, that the Central Bank of Nigeria’s (CBN) naira redesign policy will undergo a thorough review. He expressed his concerns about the harsh implementation of the currency swap, particularly considering the significant number of unbanked individuals in Nigeria. During the review process, both currencies will continue to be treated as legal tender.
President Tinubu emphasized the need for a comprehensive overhaul of Nigeria’s monetary policy. He called for the CBN to work towards establishing a unified exchange rate to redirect funds from arbitrage towards productive investments in infrastructure, equipment, and job creation, which are vital for the growth of the real economy.
Furthermore, the president stressed the importance of reducing interest rates to stimulate increased investment and consumer spending, thereby supporting the economy at a higher level.
CBN Devalues Naira
Report has it that Naira has been devalued by the Central Bank of Nigeria (CBN), with the new exchange rate set at N631 to the dollar, compared to the previous rate of N461.6 at the Importers and Exporters (I&E) window. This devaluation follows President Bola Ahmed Tinubu’s announcement of the government’s plans to unify the country’s exchange rate in order to stimulate the economy.
Following the above report, CBN Denied the report and labeled it fake news.
The Central Bank of Nigeria (CBN) has refuted a report by a national daily claiming that it devalued the naira to N631 per dollar at the importers’ and exporters’ (I&E) window. The apex bank took to Twitter on Thursday to clarify its position.
The newspaper had stated that the naira was devalued, with a trading rate of N631 to the dollar on the official window. According to the report, this devaluation occurred 48 hours after President Bola Ahmed Tinubu announced the government’s plans to unify the country’s exchange rate for economic stimulation. In response, the CBN stated that it had not devalued the naira.
The CBN, through its Director of Corporate Communications, Isa Abdulmumin, issued a statement dismissing the news report as full of falsehoods and destabilizing innuendos. The statement highlighted the newspaper’s potential ignorance regarding the workings of the Nigerian foreign exchange market. The CBN clarified that the exchange rate at the I&E window on June 1, 2023, was N465/US$1 and had remained stable at this rate for some time.
Meanwhile, according to GoldenNewsNg, the naira reportedly reached as high as N632/$ at the I&E window on Thursday due to increased demand.
