N380 forex rate is currency adjustment not devaluation - Emefiele

The Governor of Central Bank of Nigeria, Godwin Emefiele has made a clarification on the decision to peg the exchange rate of the Naira at N380 to a dollar. 

Emefiele stated that the recent jump in foreign exchange rate was currency adjustment and not devaluation of Naira. 

Speaking at an extraordinary bankers committee meeting comprising banks’ chief executive officers and CBN directors in Lagos, the CBN Governor said; 

The Central Bank of Nigeria has the responsibility to see to the adjustment in the currency; what you have seen is an adjustment in currency and we have been accused that we have a hand, we don’t have a hand, Emefiele said.

We allow the I&E window, which is the dominant market to dictate the exchange rate in the market.

At this time the CBN provides FX in that market at 380, anyone who has higher than the 380 can go ahead, but it should be available in the market to fund the domestic market.

The new rate is only an adjustment. In economics and foreign exchange management language, it is not a devaluation.