Posts Tagged ‘Naira

Prof. Soludo, the CBN Chairman was currently interviewed by the BBC on the new restrictions placed on banks in order to stabilize the Naira. Some of the highlights are that:

  • The CBN will not defend the Naira at a particular price thereby allowing the market forces to determine the rate
  • Some banks were involved in questionable currency trading practices
  • Commercial banks are allowed to purchase foreign exchange from the central bank only “for the use of customers” and may not use currency holdings for interbank transactions
  • The CBN board met yesterday to discuss the continuing devaluation of the Naira. The Naira had fallen so much that it was trading for N160 to a dollar. Some of the steps to be taken include:
    1. Specifically, Soludo said operations of Bureaux de Change (BDCs) would be streamlined to reflect what is obtainable worldwide.
    2. Besides, all the loose ends in foreign exchange market would be plugged with proper documentation that would require reasons for requests for foreign exchange by banks on behalf of their customers. Erring banks would be sanctioned with suspension from the foreign exchange market.

    First, it was the news that the Naira will be revalued. It was then followed by the news that the Federal Government was not informed and that they were caught off-guard by Soludo’s announcements – that he did not inform or consult the President before making the pronouncement. Then the news that the CBN did [...]

    New Naira Policy

    In: News

    16 Aug 2007

    The CBN head has announced a new Naira policy – the Naira will be redominized. The new plan essentially calls for the chopping off of 2 zeros from the currency. It is to go in to effect August 2008. The N100, N200, N500, and N1000 notes will be scrapped. N20 will now be the highest [...]


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