The Central Bank of Nigeria has refuted claims of a purported plan to drastically reduce the exchange rate of the naira to N1.25 kobo against the US dollar.
A report circulating online had suggested that the apex bank was considering a new foreign exchange (FX) policy slated for November 2023, aiming to stabilize inflation and simplify currency conversion.
The report also indicated that this policy aimed to combat currency substitution and phase out higher denomination notes with reduced purchasing power.
As of Tuesday, the official exchange rate stood at N742.10 to the dollar in the investors’ and exporters’ (I&E) window, Nigeria’s primary FX market.
In response to the circulating report, the CBN issued a statement on Wednesday, categorically dismissing the claims: “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 asserted.
This development comes in the wake of various initiatives implemented by the financial regulator to revamp the FX market since President Bola Tinubu assumed office at the end of May 2023.
These initiatives have included the removal of restrictions on deposits into domiciliary accounts and the consolidation of multiple exchange rate systems, which has resulted in the devaluation of the naira.
The naira’s depreciation has caused the dollar’s price at the I&E window to surge from N461.50/$1 on June 13 to the current rate of N742.10/$1 as of Tuesday.
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. pic.twitter.com/zTPItiQ2ea
— Central Bank of Nigeria (@cenbank) September 13, 2023
