By Ossom Raphael
The Central Bank of Nigeria, Tuesday has announced a new official naira-to-dollar exchange rate, thereby bringing down the Nigerian currency by 13 naira, as the country struggles to reshape its fiscal policies.
The Apex bank at the Monetary Policy Committee meeting in Abuja devalued the naira in response to fallen oil price in the international market, and also reviewed Nigeria’s monetary policy rate from 12 per cent to 13 per cent.
The monetary policy rate highlights lending rate for the country’s economy.
The naira will now exchange officially at N168 to a dollar, and no longer N155, the bank said.
The bank also moved the private cash reserve ratio from 15 per cent to 20 per cent, while retaining public sector cash reserve ratio at 75 percent.
The Apex Bank Governor Mr Godwin Emefiele, said the decision to lower the value of naira against the dollar is to strengthen the currency, noting the continued drop in global crude oil prices and urged the National Assembly to ensure the speedy passage of the Petroleum Industry Bill, PIB, which has been pending passage for the past two years.
The committee also urged the government to take advantage of the declining oil prices to cut down on subsidies on supply of petroleum products in the 2015 budget, while states and Local Government should step up efforts to boost their internally generated revenue and reduce reliance on revenues from the federation account.