CBN Holds MPC Meeting Amidst Devaluation Speculations

The Central Bank Of Nigeria (CBN) is scheduled to hold Monetary Policy Committee, MPC, meeting on the 23rd and 24th of May, 2016. The meeting will hold amidst speculation among shareholders that the federal government will soon devalue the naira.

Devaluation talks had been put on hold after President Muhammadu Buhari‘s continued stance against the action. According to him, devaluation doesn’t help the poor man on the street.

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CBN Governor MR Godwin Emefiele
CBN Governor MR Godwin Emefiele

However, speculations began to emerge on May 11 after Vice President Yemi Osinbajo, announced a review of the currency regime that “may feature” a devaluation as a way of boosting foreign exchange inflows.

Since then the currency had depreciated more against the dollar at the black market. It remained pegged at N199 per greenback on the official CBN market.

While CBN‘s MPC meeting probably won’t devalue the official rate, it may announce plans to allow more businesses and investors to use the unofficial market, Charlie Hampshire, head of trading for payments FX at INTL FCStone Ltd., which covers around 35 sub-Saharan African currencies, said according to Bloomberg.

“It would be an unofficial devaluation, a devaluation through the back door,” she claims.

“If they want to endorse the secondary market, they need to say who can access it and tell the banks how they can use it.” she added.

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Daniel Enisan is a content writer at With a degree in mass communication, Daniel is a full breed journalist. Daniel is a realist, loves the use of sarcasm, a movie and music junkie. He is also a poet and a good listener.

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