The Central Bank of Nigeria (CBN) has debunked claims that it would crash the exchange rate to N1.25/$1.
This was in line with the promise of President Bola Tinubu to unify the multiple exchange rate in the market.
Nigerian banks mostly reported massive profits in the half-year results mostly arising from the depreciation of the naira following the unification of exchange rate windows.
The depreciation increased the balance sheet of the banks in naira based on their forex holdings. The apex bank fears that banks could be tempted to spend the profits making them vulnerable if the exchange rate strengthens.
Reports had circulated online claiming that the apex bank would “introduce a new naira policy by November 2023” which would see the foreign exchange rate to be $1=N1.25.
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