Naira has not been devalued, CBN insists

The Central Bank of Nigeria (CBN) said yesterday that those campaigning for further devaluation of the naira, or speculating it has already devalued the local currency should have rethink.

There were speculations that the CBN would devalue the naira, as a last resort to ongoing economic crisis and will come immediately after raising fuel prices.

But CBN’s Acting Director, Corporate Communications, Isaac Okoroafor, dismissed speculations that the naira was already devalued further, saying the speculations are unfounded.

Speaking yesterday with The Nation, the apex bank’s spokesman said the regulator will not, and has not devalued the naira. “Naira has not been devalued. The naira devaluation rumour is untrue,” he said.

But amidst devaluation uncertainties and shortages of forex, most foreign investors remain cautious about entering the Nigerian market whilst currency and reinvestment risks linger.

Analysts at FBNQuest, the investment arm of First Bank of Nigeria Holdings Plc, said a devaluation as a last resort is on its way although the CBN has stiffened its defense of its exchange-rate policy. “We see devaluation under duress and a year-end interbank rate of N230,” it said.