The Central Bank of Nigeria on Tuesday in Abuja devalued the Naira by N13. CBN says the move is part of efforts to strengthen the nation’s economy.
CBN Governor, Mr Godwin Emefiele, disclosed the devaluation to newsmen after a meeting of the Monetary Policy Committee.
Emefiele explained that under the new arrangement, the Naira would now exchange for N168 instead of the old official rate of N155 to one US dollar.
He said the meeting also decided to increase the Monetary Policy Rate by 100 basis point from 12 per cent to 13 per cent.
The MPR is the rate at which banks borrow from the CBN to cover their immediate cash shortfalls. The higher the cost of such borrowing, the higher the rate at which banks advance credit to customers.
The CBN governor explained that the decision to lower the value of the Naira against the dollar was to strengthen the currency.