CBN Devalues Naira, Sets Exchange Rate at N631/$1

CBN Devalues Naira, Sets Exchange Rate at N631/$1

According to a report by Daily Trust, the Central Bank of Nigeria (CBN) has reportedly devalued the Naira, setting the exchange rate at N631 to the US dollar. This new rate is a significant decrease from the previous day’s rate of N461.6, which was used at the Importers and Exporters (I&E) window.

The devaluation comes just 48 hours after President Bola Ahmed Tinubu announced the Federal Government’s plans to unify the country’s exchange rate in order to stimulate the economy.

The president emphasized the need for a comprehensive review of monetary policy, stating that a unified exchange rate would redirect funds from arbitrage activities to more productive investments in machinery, infrastructure, and job creation.

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During the weekly bidding for foreign exchange, the CBN sold the dollar at the rate of N631 to banks on behalf of their customers, with most bidders receiving the full requested amount. As a result of this move, prices in the parallel market have also started to decline.