CBN Denies New Naira Policy - The Top Society

CBN Denies New Naira Policy


The Central Bank of Nigeria (CBN) has stated that it has no intentions of implementing a new naira policy that would significantly devalue the dollar exchange rate to N1.25 kobo.

Contrary to online reports, the CBN has not proposed such a policy, and there are no plans for it in November 2023 or beyond.

This information was revealed on its official X (formerly Twitter) page on Wednesday along with a screenshot of the report, refuting its accuracy, declaring it to be false.

“The Central Bank of Nigeria would like to bring to your attention that the attached message currently circulating on social media is false and should be disregarded,” the apex bank wrote.

Policy PolicyAccording to the report, the policy is scheduled for November 2023 and will “better anchor inflation expectations and make for easier conversion to other major currencies”.

It also stated the policy will “reverse the tendency for currency substitution” as well as “eliminate higher denomination notes with lower purchasing power”.

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As of Tuesday, the exchange rate stood at N742.10 to the dollar in Nigeria’s official FX market, known as the investors’ and exporters’ (I&E) window.

Since President Bola Tinubu took office at the end of May 2023, the financial regulator has been implementing a series of measures aimed at reforming the FX market.

These measures include lifting restrictions on deposits into domiciliary accounts and consolidating the various exchange rate systems, resulting in the devaluation of the naira.

This devaluation has caused the price of the dollar in the official investors’ and exporters’ (I&E) market to rise from N461.50/$1 on June 13 to N742.10/$1 as of Tuesday.

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