SAT, MARCH 21 2020-theG&BJournal- The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has put a spin to the current narrative of the country’s currency position. He said today in Lagos that the value of the local currency is not devalued, suggesting that the huge changes on the official rate as well as the rate for foreign portfolio investors are mere ‘’alterations.’’
He actually called it an ‘’adjustment of price and not a devaluation of the currency.’’
In justifying the apex bank’s current position, the Governor said the CBN and deposit money banks agreed to put Nigeria first and shelve profit, support the economy and ensure financial stability.
Earlier in the week, the apex posted huge variations on the exchange rate on its website, devaluing the official exchange rate by as much as 15% to 360/$ from N307 and to N380/$ from N366 for the foreign portfolio investors.
Currency watchers dismissed the governors explanation as ‘’saving face’’ and contrite.
‘’Whatever he calls it, it will be the best for the country to take the steps expected of it to rescue the country’s exchange rate system from its inefficiencies,’’ said one analysts in Lagos.
The local currency have came under huge pressure since the global oil price collapse on the back of the coronavirus (COVID-19) pandemic outbreak. Crude prices slumped to as low $29 per/b before recovering to about $30 a barrel, prices well below the 2020 budget benchmark of $57. On top of that, the excess crude dropped hugely prompting questions around the CBN’s capacity to continue the funding of the FX market.
Meanwhile, the apex have announced the extension of FX funding facilities to some pharmaceutical firms including Emzor, Fidson, GSK, May & Baker, Unique Pharma, Swiss Pharma, Neimeth, Sagar, Orange Dugs, Dana Pharma and others to procure raw material and equipment, to support fight against the Coronavirus outbreak in the country.
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