Currency devaluation doubtful as MPC deliberates

ayodele johnson

January 25, 2016 9:21 AM

Bank customers will be anxiously waiting for the outcome of the meeting as it could determine the fate of the economy for at least the next three months

CBN Building

In recent weeks, financial experts have called intensely for the devaluation of the naira due to the consistent fall of the currency against the dollar.

This is seen as a better alternative considering the newly introduced foreign exchange policy of the Central Bank of Nigeria.

Mr. Johnson Chukwu of the Cowry Asset Management Limited said, “The mood of the Federal Government is that the rates will be kept unchanged. The Cash Reserve Ratio and the Monetary Policy Rate will be left unchanged, while the exchange rate will also be left unchanged”.

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The Head, Research and Investment Advisory, Afrinvest West Africa Limited, Mr. Ayodeji Ebo mentioned that even if the devaluation is unlikely, the committee might look into other pressing issues.

“The list of banned items may be reviewed considering the fact that the naira volatility became serious when those 41 items were banned from the official CBN window.”

Bank customers will be anxiously waiting for the outcome of the meeting as it could determine the fate of the economy for at least the next three months.

ayodele johnson