Contrary to speculations in some quarters, Central Bank of Nigeria on Friday night said that the Naira had yet to be devalued.
The bank 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 reports on Friday that President Muhammadu Buhari had bowed to pressure from the International Monetary Fund to devalue the Naira from the current official rate of N197 to N290 to a dollar.
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, 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.
