Reps Direct CBN To Urgently Check Further Devaluation Of Naira

The House of Representatives on Wednesday directed the Central
Bank of Nigeria (CBN) to urgently put in place a policy to check
further devaluation of the Naira to the United States Dollar (USD)
and other international legal tenders.

The House directed its Committee on Banking and Currency to
ensure compliance and report back to the House in two weeks for
further legislative action.

The resolutions followed a motion of urgent public importance by
Bamidele Salam on Wednesday.

The House noted that in February this year, the Governor of the
Central Bank of Nigeria, while addressing the Bankers Committee at
a summit on the economy in Lagos, informed the committee about the
Naira’s devaluation against the USD.

The House noted the CBN Governor said that the official exchange
rate stands at N410 to the dollar, which is 7.6% weaker than the
rate of N379 published on the CBN’s website.

It further noted that while the value of the Nigerian Naira
relative to the US Dollar has declined by 9% in the last 6 months,
the South African Rand and Ghanaian Cedi have appreciated by 11.4%
and 1%, respectively.

The House said it was aware the CBN has adopted multiple
exchange rates since last year in a bid to avoid an outright
devaluation.

The House of Representatives on Wednesday directed the Central
Bank of Nigeria (CBN) to urgently put in place a policy to check
further devaluation of the Naira to the United States Dollar (USD)
and other international legal tenders.

The House directed its Committee on Banking and Currency to
ensure compliance and report back to the House in two weeks for
further legislative action.

The resolutions followed a motion of urgent public importance by
Bamidele Salam on Wednesday.

The House noted that in February this year, the Governor of the
Central Bank of Nigeria, while addressing the Bankers Committee at
a summit on the economy in Lagos, informed the committee about the
Naira’s devaluation against the USD.

The House noted the CBN Governor said that the official exchange
rate stands at N410 to the dollar, which is 7.6% weaker than the
rate of N379 published on the CBN’s website.

It further noted that while the value of the Nigerian Naira
relative to the US Dollar has declined by 9% in the last 6 months,
the South African Rand and Ghanaian Cedi have appreciated by 11.4%
and 1%, respectively.

The House said it was aware the CBN has adopted multiple
exchange rates since last year in a bid to avoid an outright
devaluation.