CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% - Business - Nairaland
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CBN Reduces Lending Rate To 11 Percent / Cash Shortage Hits Banks, Overnight Lending Rate Jumps / CBN Officially Devalues Naira (2) (3) (4)
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| CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by bigass(f): 4:03pm On Nov 25, 2014 |
The Central Bank of Nigeria, CBN, has announced a new official naira-to-dollar exchange rate, forcing down the Nigerian currency by 13 naira, as the country struggles to reshape its fiscal policies in response to dwindling oil price. The bank devalued the naira at its monetary policy committee, MPC, meeting on Tuesday in Abuja, where it 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 CBN said the decision to lower the value of naira against the dollar is to strengthen the currency. Mr. Emefiele noted the continued drop in global crude oil prices and reiterated the call on the government and the National Assembly to speed up the process towards the immediate passage of the Petroleum Industry Bill, PIB, which has been pending passage for the past two years. The committee 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. The CBN governor assured that the bank remained committed to maintain financial system stability, while warning against speculative activities that drive inflation. http://www.premiumtimesng.com/business/171875-breaking-dwindling-oil-price-cbn-devalues-naira-raises-lending-rate.html How much is Dollar on the street? 11 Likes 4 Shares |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by sonssyo(f): 4:08pm On Nov 25, 2014 |
what is he doing 6 Likes 2 Shares |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by scribble: 4:11pm On Nov 25, 2014 |
Nigeria we hail thee.... This is what happens when you have a mono-economy 20 Likes 1 Share |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by citizenisb: 4:12pm On Nov 25, 2014 |
http://www.zerohedge.com/news/2014-11-25/nigeria-raises-rates-devalues-defend-collapsing-currency-oil-price-blowback-spreads Having exposed the demise of various oil-producing nations' currencies previously, it is noteworthy that Nigeria folded today and devalued the Naira peg to the USDollar by over 8% from 155 to 168 and widened its 'intervention' bands from 3% to 5% (the upper band is where the market is trading). Furthermore, the central bank raised rates from 12% to 13%. All oil-producing nations are seeing dramatic pressure on their currencies since oil topped... The adjusted peg appears to 'try' to cap the collapse of the currency at current levels after the old peg-band was crushed a few weeks ago... and Nigeria is rapidly running out of reserves to defend its currency. 4 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by simplemach(m): 4:13pm On Nov 25, 2014 |
Wait o, but will the price of one cup of garri still remain #20? Cos that i think is the only way i will be affected. 37 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by chemali: 4:16pm On Nov 25, 2014 |
scribble: The naira never appreciates in time of high oil prices but very quick to depreciate when the oil price falls. Apart from the mono economy which is a problem, the increased earnings is being looted and not reinvested in our future. This for me is sufficient reason to kick pdp out from the centre. When oil prices recover or exceeds previous highs, it is certain that 168 will become the new normal in readiness for the next price crash. 160 Likes 2 Shares |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Kx: 4:17pm On Nov 25, 2014 |
From being the biggest economy in Africa by GDP figures to devaluing the nation's economy in a space of a couple of months The exchange rate and interest rate just got transformed. under the transformation agenda! So much for Fresh air! 129 Likes 4 Shares |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by simplemach(m): 4:18pm On Nov 25, 2014 |
chemali:must a party's name be mentioned? 18 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 4:19pm On Nov 25, 2014 |
Jonathan has finished us ...he must just go next year  117 Likes 4 Shares |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by chemali: 4:20pm On Nov 25, 2014 |
simplemach: Do you think the pains we are going to experience is separate from the Jonathan/PDP supervised looting that has ravaged Nigeria? 66 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by citizenisb: 4:22pm On Nov 25, 2014 |
http://nairametrics.com/b-r-e-a-k-i-n-g-cbn-devalues-the-naira/ The Central Bank Just concluded its Monetary Policy Meeting where it announced that was going to devalue the Naira from the current N155 to N168 representing a 7.7% devaluation and by far one of the most drastic decision ever taken by a fresh CBN Governor. Here are highlights of the MPR Communique Devalued the naira from N155 to N168 with a 5% corridor Increase Private sector CRR to 20% Increase Monetary Policy Rate to 13% from 12% 1 Like |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by BarryX(m): 4:24pm On Nov 25, 2014 |
So they have succeeded in impoverishing us  Or what does that mean to a Nigerian on the street hustling for his daily bread? Apparently, The opposition will have a field day castigating the government citing how "clueless" and whatnot. I don't know what they would have done differently if saddled with the responsibility. Note the biggest problem mentioned is the passage of the PIB - which some lazy bones from the other side of the divide don't want want to see or pass. The problem with Nigeria rest squarely on some mofos up there. 15 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by citizenisb: 4:26pm On Nov 25, 2014 |
3 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Boss13: 4:28pm On Nov 25, 2014 |
Kx: A funny approach to the topic. However, on an honest note, we are heading for economic disaster. The naira, presently, is shooting up to N180 on the street. Now that official rate is N168, black market price will shoot further to N190. This will further give rise to increase in the importation of goods into this country and a further price hike in goods and services. I predict a double digit inflation rate as a result of this because we are a huge consumption economy. The government need to tighten its fiscal and monetary policies immediately and begin a spiral economy boost by enabling all sectors of the economy to thrive. I will not be surprise if more people begin to hold and transact with dollars. Oil dependency has gotten us into this mess. The price for oil will not go up again. This news brings tears and pains because we should have seen the writing on the wall. Obama swore to bring an end to increase Oil price and immediately they started their research on Shale Oil. Our government, especially our honourable Finance Minister, who is also expected to assess the risk, decided to relax and told us that if US don't buy our oil, other countries will but she has also forgotten that if US sells Shale Oil at a cheaper rate, the market dynamics will change and loyal Nigerian customers will change their buying preference. 105 Likes 6 Shares |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by jacabi(m): 4:30pm On Nov 25, 2014 |
This is serious. Our politicians are greedy, they don't want to sacrifice anything for the masses but they want the masses to die for them. When will this thing affect their salaries and allowances? 29 Likes 2 Shares |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by bigass(f): 4:30pm On Nov 25, 2014 |
heard its 185 on the streets 11 Likes 3 Shares |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 4:31pm On Nov 25, 2014 |
Chai...Warris dis..5naira no fit even buy cold sachet water 3 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Kx: 4:32pm On Nov 25, 2014 |
Boss13: Is it not high time we stopped "cursing" providence for blessing us with oil resources? Oil is not our problem, our leaders corrupt tendencies and poor mgt of the nation's resources instead is to blame. Dont Saudi Arabia, UAE, Quatar, Norway etc have oil resources? Are they going through what our leaders are forcing down our throat? 23 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 4:33pm On Nov 25, 2014 |
We need a change in government. Our Fiscal Policy has been counter-productive due to high rate of corruption plus high cost of running government. Nigerians save your future, kickout the incumbent with your votes..plssssss 68 Likes 3 Shares |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by espn(m): 4:34pm On Nov 25, 2014 |
simplemach:yes it must..d party in govt must b called! Jonathan will destroy dis country! 21 Likes 1 Share |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by sonssyo(f): 4:34pm On Nov 25, 2014 |
jacabi: very serious, I think this is time for the government to empower our youths by giving them loans. this economy needs to be diversified 1 Like |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 4:35pm On Nov 25, 2014 |
Kx:That GDP Rebasing was the biggest scam, it has no effect on the economy. It is so painful because most Nigerians have this "i don't care attitude" 42 Likes 1 Share |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Boss13: 4:36pm On Nov 25, 2014 |
Kx: I did not type Oil. I typed Oil dependency - please read again. We solely depended on Oil, whether the revenues derived from it were stolen or not, we would have still been affected by this. OPEC is holding a meeting on thursday to determine production cut in order to stem declining oil prices. They intend to fight the US Shale Oil. 5 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 4:38pm On Nov 25, 2014 |
simplemach:Do you know what Fiscal Policy is? Guy this is an instrument by the government, it is a determinant on what direction an economy will take, whether growth or decline. It is very bad that the PDP for the last 15 years have failed to put sound policy in place. It is worse since the coming of Mr. Jonathan. Kick out PDP 30 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by akoaki(m): 4:38pm On Nov 25, 2014 |
Today, a dollar exchanged for N185 on the street; gradually approaching N200. What a country !! 9 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Boss13: 4:38pm On Nov 25, 2014 |
barcanista: There was nothing wrong in rebasing the economy. It had to be done. True, it added nothing to the economy but it was a right approach and we all felt the pseudo effect from knowing that our economy is big, however not doing great. 6 Likes 1 Share |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by wiseguy(m): 4:40pm On Nov 25, 2014 |
They only tell us about the effect of oil price drop. When the oil price goes up, we don't feel the impact at all. Let the austerity measures start from the top. From Aso rock to the National assembly. They should cut their bogus salaries and allowances first. 32 Likes 1 Share |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Boss13: 4:40pm On Nov 25, 2014 |
barcanista: I will agree with you on this. PDP has never taken the nigerian economy seriously. However, I think Jonathan is actually the first to consider it and I don't mean take it seriously but considered the economy. There is no strategy for the Nigerian economy, no plan - now we hear of stomach infrastructure. 6 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 4:41pm On Nov 25, 2014 |
Boss13:bros I will rather have a genuine program to rise the GDP and ultimately the economy that doing some "Recalculation" of my accumulated GDP since 1990 just to score some none existing point. It would have been different if the Government had sound policy in place before rebase. The President, Finance Minister and Minister for National Planning owe Nigerians lots of explanation 12 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by LouisVanGaal(m): 4:42pm On Nov 25, 2014 |
barcanista:I can't understand it anymore! As if it's now rocket science to vote this man out...Majority claims he has underperformed, yet they are willing to still give another 4 years.. 17 Likes |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 4:43pm On Nov 25, 2014 |
Boss13:Imagine such silly term, stomach infrastructure. They have automatically turned Nigerians to beggars, now the plan is to give us food to eat without providing means to eat. What a wicked government and party 13 Likes 2 Shares |
| Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by RockMaxi: 4:44pm On Nov 25, 2014 |
simplemach: You don't need rocket science to know that the party mentioned has no plan for this country beyond enriching their cronies and personal pocket.  PDP have been in government for 15years now, oil prices have always been on the increase until now.There is no political party that can save our economy from this crisis. APC is not even going to do it because indirectly they all contributed to this bogus and unrealistic recurrent expenditures that have been crippling this economy. We only pay lip service to economy diversification and poor enough we have almost nothing to attract appreciable volume of dollars that can keep us afloat. We need the divine intervention of God. 46 Likes |
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