The Central Bank of Nigeria officially announced the devaluation of naira to 410.25/$ after the country’s currency defied all interventions to retain its value.
However, experts have said that the last resort employed by the CBN to adopt the NAFEX Investor & Exporter Forex window rate of N410.25 as its official exchange rate to the dollar would result in inflation and cause the poverty level to increase.
The CBN confirmed the new official rate on its website after it had removed N379/$ earlier in May.
The naira was yesterday, exchanging at N486/$1 at the parallel market and N410.25/ $1 at the I&E Forex window.
According to the report, despite the improved gross domestic product GDP, this was released during the first quarter of 2021 by the National Bureau of Statistics.
The Central Bank of Nigeria Governor Godwin Emefiele described Nigeria Economy as Stagflation, said the GDP is weak.
However, he defined Stagflation in Economics as a recession-inflation which is a situation where the inflation rate is high, the economic growth rate is below and unemployment increases steadily.
CBN-licensed BDCs will fight alongside the regulator to ensure that speculators lose their capital should they persist in the illegal activity.
Dr Sam Nzekwe, a former President of, Association of National Accountants of Nigeria, also said the changes would lead to imported inflation because importers would get more expensive forex from the Bureau de Change.
Naturally, he said, the devaluation would not have made any difference, but the BDCs would further increase their own exchange rates because of the shortage of forex for importation.
According to the report, a professor of economics, Babcock University and past President of Chartered Institute of Bankers of Nigeria, Prof. Segun Ajibola, noted that the CBN had been trying to defend the value of the naira to achieve some stability.
However, there was little the CBN could do because of the exposure to the foreign market, he said.
At the end of the MPC meeting in Abuja yesterday, Governor Emefiele said his team was determined to make a significant change through the apex bank intervention.
by our reporter.