Despite calls from international and national financial experts and concerned Nigerians, The Monetary Policy Committee (MPC) on Tues...
Despite calls from international and national financial experts and concerned Nigerians, The Monetary Policy Committee (MPC) on Tuesday, voted against the devaluation of the Naira.
The decision puts to bed the speculations regarding the steps the
Central Bank of Nigeria intends to take as the naira crashes further.
According to the CBN Governor, Godwin Emefiele- instead of devaluing
the naira, CBN would lower the interest rates to ease liquidity in the
economy.
The naira is expected to continue to exchange at the official window
for N197-N199, while at the parallel market, the currency is expected to
soar above N300 to a dollar.
The benchmark rate was also retained at 11% so as to support the
economy which is suffering from the effects of the falling prices of
oil.
“The current episode of lower oil prices is expected to remain over a very long period,” Emefiele said.
“Consequently, it is imperative to brace up for a longer period of
low government revenues from oil sources which will necessitate hard and
uncomfortable choices,” the CBN governor was quoted to have said.
