Emefiele Calls Critics of Multiple Exchange Rates “Mischievous”

The Central Bank of Nigeria’s Governor, Godwin chastised critics who insists that Nigeria has multiple exchange rates, calling them “mischievous”. Mr Emefiele was taking questions at the monetary policy communique press briefing held on Tuesday, January 24th . This is despite clear evidence that Nigeria does have multiple official exchange rates, a situation firmly impossed by the CBN.

Mr Emefiele also promised that Nigeria will continue to provide hard currency with priority given to manufacturing industries who need it  to import raw materials and spare parts. He also revealed that the CBN will “from time to time” intervene in the forex market “to ensure that the exchange rate does not go beyond its expectations”, another confirmation that Nigeria is either no longer floating its currency or never did in the first place.

He also revealed today that Nigeria has about $28.9 billion in reserves, the highest since November 2015 when it was $28.4 billion. He did not explain what is the reason for the recent increase in Nigeria’s forex reserves.

Nairametrics reported on Monday that in December 2016, the CBN recorded the highest inflow of forex at about $7.5 billion, the most since September 2015. Largest outflow was in June 2016 at $2.7 billion. Curiously a sum of about $2.39 billion was recorded as “Non-oil inflow other official receipts” and was the highest for a single month since 2005. Some analysts opined this may be one of the reasons why the CBN reserves have spiked of late.

Sources recently reveal to Nairametrics that the sources of the inflow could have come from the AFDB loan. Last February (2016) the AFDB announced plans to lend Nigeria about $1 billion in loans following the endorsements of the 2016 budget.

Nigeria’s exchange rate remains closer to N500/$1 compared to an exchange rate of N305/$1 displayed on the website of the CBN.