Naira stabilizes at N480/$1 as CBN eases rate

The Naira has stabilized at N480/$1 at the bureau de change market after the Central Bank of Nigeria (CBN) removed the peg on the Naira.

The CBN, it was learnt, removed the official peg on the Naira to the dollar a few days back in a bid to allow for exchange rate harmonisation.

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Before then, the naira was pegged at N381/$1. However, trading at the Nigerian Autonomous Foreign Exchange (NAFEX) window showed the Naira trading between N426.67/$ and N411.67.

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, had three months ago confirmed the official depreciation of the naira at the official market to N410 against the dollar.

The CBN decision is also part of measures to ease the pressure on the naira.

Emefiele, while speaking at a special summit on the economy in Lagos in February 2021 confirmed this saying it was due to the drop in crude oil earnings and the associated reduction in foreign portfolio inflows significantly affecting the supply of foreign exchange into Nigeria.

“In order to adjust for the decrease in the supply of foreign exchange, the naira depreciated at the official window from N305/$ to N360/$ and now hovers around N410/$,” Emefiele had said.