Nigerian Lawmakers Slam Naira Devaluation, Warn of Inflation Implications
Nigeria’s House of Representatives has moved a motion calling on the country’s central bank to end the continuing devaluation of the naira. In his unanimously adopted motion, House Representative Bamidele Salam warned the Central Bank of Nigeria (CBN) of the negative “implications of further devaluing the naira.” Lawmakers Slam CBN U-Turn The House’s warning follows the CBN’s recent decision to devalue naira from an exchange rate of 393 to the current one of just under 411 nairas for every dollar. Furthermore, the Nigerian lawmakers’ call for....
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The Nigerian currency, the naira, plunged to a new all-time low of N570 for every dollar on September 16, 2021. This new exchange rate means since August 17, the naira has now lost about a tenth of its value on the foreign currency black market. Naira Overvalued In spite of this plunge, which has been attributed to the biting shortage of foreign exchange, authorities insist the naira’s real exchange is unchanged at N411 for every dollar. This means forex buyers that source this commodity on the parallel market are now paying a premium of over N150. Alternatively, the new parallel....
Nigerian Finance Minister Zainab Ahmed has denied widespread reports that the Central Bank of Nigeria (CBN) had sanctioned the devaluation of the local currency sometime in May 2021. Instead, she attributes the naira’s fall to the “volatility in the oil price.” Ahmed’s remarks come just a few weeks after the official naira exchange rate dropped from $381 to the dollar to the current rate of 411:USD1. Devaluation vs Depreciation As previously reported by Bitcoin.com News, the CBN had initially allowed the naira’s exchange rate to drop to 419.5 per U.S. dollar.....
The Nigerian presidency has denied reports that the country’s Vice President (VP), Yemi Osinbajo, was calling for the devaluation of the local currency when he recently questioned the naira’s official exchange rate. The Huge Arbitrage In fact, according to a report that quotes Laolu Akande, the VP’s assistant, Osinbajo is against “a willy-nilly devaluation of the naira.” Akande suggests that the media may have taken Osinbajo’s comments out of context. He explained: For context, the Vice President’s point was that currently, the Naira....
A Bank of America economist, Tatonga Rusike, has said the Nigerian currency is overvalued by as much as 20% and will likely be devalued in 2030. The remarks by the economist came just days after the currency’s exchange rate reportedly touched a new low of just under 750 naira for every U.S. dollar on the parallel market. Currency Fair Value Analysis According to a Bank of America economist, Tatonga Rusike, the Nigerian currency, which has officially stayed below the 450:1 mark since May 2021, is overvalued by 20% and he expects it to be devalued by as much in 2023. In his October 18....
Nigeria’s national currency Naira plummeted in value against the US dollars, amid the collapse of global oil prices. Although the Bitcoin industry and the market for the digital currency is still fairly small in size, ice3x.com founder Gareth Grobler predicts to see a rapid change in the rate of adoption and awareness of Bitcoin in Nigeria in the near future. Nigeria’s national currency Naira plummeted in value against the US dollars, amid the collapse of global oil prices. The central bank of Nigeria and President Muhammadu Buhari has already begun implementing various currency controls....