Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » I’ll not devalue the Naira – Sanusi

    I’ll not devalue the Naira – Sanusi

    September 25, 2013
    Share
    Facebook Twitter LinkedIn WhatsApp

    Sanusi-Lamido25 September 2013, Abuja – The Governor of the Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi, has vowed to defend the Naira. He said he was prepared to use the nation’s foreign reserve to ensure the currency’s stability.

    Briefing the newsmen at the end of the Monetary Policy Committee meeting in Abuja, he said that the argument of those pushing for the devaluation of the Naira did not make any valid economic sense in an import-dependent country like Nigeria.Mallam Sanusi insisted that the CBN would stick to its position unless forced to do otherwise.

    “As far as the Naira is concerned, the CBN has always said that we are committed to its stability. I know there are some people who don’t share that view. But I have not personally heard any economically valid argument as to the benefits of devaluating the Naira up to this point in time.

    “It will not improve our export nor reduce our imports into the country. It will not improve our fortunes as long as our structural reforms have not been implemented.

    “My view and the view of the CBN is that if we will have to use some of our reserves to support the currency, we will. No central bank governor will say that he will not support the currency but we want to be very clear in our minds and to the public that there is no country in the world that will allow its currency to be determined by the market.

    “Certainly, the currency is neither over-valued nor under-valued. We are not looking for a stronger currency nor a weaker one. We just want an anchor of expectations: people want to pay school fees; people want to import raw materials; investors wants to be able to predict the returns they would have on their investments; and we think ultimately that it is more important than having a reserve at $50 billion or $40 billion.

    “We will use the reserves and the interest rates and I believe we have gone through the most difficult period. Hopefully the next months will not be as difficult as the last one or two. We expect that the Naira will be maintained within our target band but the message is that we are committed to the stability of the exchange rate and we will not, unless we are forced, to allow the Naira to weaken. I think I should make that very clear,” the CBN Governor disclosed.

    $41. 7 foreign reserve
    The CBN boss noted the decline in external reserves to the current $45.27 billion but said it was better that the $41.19 billion recorded at the end-September, last year.According to him, “the Committee (MPC) noted that this level of accretion is too low given the relatively high price of crude oil and further underscores the need for much-needed reform of the oil sector”, and said measures would be taken to address the unbridled demand for dollar in the foreign exchange market.

    Measures against dollarization
    Mallam Sanusi said that money laundering could be the only main factor for the high dollar demand and that new policy measures would soon be announced by the apex bank.He however, refused to disclose what the policy measures would be, in spite of newsmen’ attempts at his revealing the details.He lamented that, “Nigeria has become the largest importer of the U S Dollar in the whole world and said that only a firm policy against the dollarization of the Nigerian economy could save the situation.

    MPC decisions
    The governor announced that the Monetary Policy Rate, MPR, was retained at 12.0 per cent with a symmetric corridor of 200 basis point around the MPR by the MPC. His words, “the Committee noted that the actions taken at the last MPC have served the purpose of helping the naira avoid the fate of other developing country’s currencies by keeping it relatively stable. It also noted the continued moderation in inflation and the benign outlook for the next six months.

    “The Committee decided by a vote of 11 members to hold the MPR at 12.0 per cent. One member voted to reduce the MPR by 50 basis points. 11 members voted to retain the symmetric corridor of 200 basis points around the MPR while one member voted for an asymmetric corridor of 200 basis points above the MPR and 400 basis points below the MPR. All members voted to retain the 50.0 per cent Cash Reserve Requirement (CRR) on public sector funds, and 12.0 per cent CRR on private sector deposits.”
    *Emma Ujah, Vanguard

    Related News

    Equities set for weekly gain with CBN decision in focus

    AfDB & Partners launch a $263.8m infrastructure project

    ExxonMobil Nigeria appoints new Chairman & Managing Director

    E-book
    Resilience Exhibition

    Latest News

    Oil spill cleanup must go beyond Ogoni, Monarch tells FG

    July 20, 2025

    Tinubu has done more for Niger Delta – Group

    July 20, 2025

    NIMASA shut down product facility over non-compliance

    July 20, 2025

    ‘Africa deserves equal energy investment opportunities’

    July 20, 2025

    ‘Africa must add value to its minerals or lose economic sovereignty’

    July 20, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.