The naira will not be devalued by CBN – Emefiele

The Monetary Policy Committee (MPC) on Tuesday, voted against the devaluation of the Nigerian currency- 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.

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