CBN Devalues Naira to Curb Pressure on Forex Reserves
*Raises MPR to 13%, hints at further tightening in 2015
Festus Akanbi and James Emejo in Abuja
The Central Bank of Nigeria (CBN) yesterday effected a 8.38 percent devaluation of the naira, pegging its official exchange rate at N168 to the US dollar from N155 in an attempt to contain heightened demand pressure for foreign exchange in the face of falling oil prices.
The central bank also for the first time in almost two years, decided to raise the monetary policy rate (MPR), otherwise know as interest rate, by 100 basis points to 13 percent from 12 percent.
Also adjusted was the cash reserve ratio (CRR) on private sector funds held by banks to 20 per cent from the current 15 per cent.
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