BEVERLY HILLS, January 26, (THEWILL) – The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has voted against a devaluation of the naira.
Speaking at the end of the meeting, CBN Governor Godwin Emefiele, disclosed that the MPC choose to rather, lower interest rates in order to ease liquidity in the economy revealing that the 12 members of the committee voted unanimously to keep the rate unchanged.
“The current episode of lower oil prices is expected to remain over a very long period,” Emefiele said.
“Consequently, it is imperative to brace up for a longer period of low government revenues from oil sources which will necessitate hard and uncomfortable choices.
With the decision, the naira will continue to exchange at the official window for N197-N199, while parallel market rates are expected to jump well above N300 as a result of the announcement.
Emefiele also defended the CBN forex restrictions, saying locally produced food such as fish had witnessed increases sales. “It has been positive,” he said.
“There is wide room for optimism about the medium to long term macro-economic prospects, especially given the clarity in the policy direction of the administration, the various interventions in the real sector, gradual improvements in the power sector and the reinvigorated fight against corruption.”
The MPC also voted to retain the benchmark rate at 11% in order to support the economy which has been affected by falling oil prices.
Story by David Oputah
