The Nigerian House of Representatives directed the Central Bank of Nigeria (CBN) to put in place an urgent policy to prevent further depreciation of the naira against the US dollar and other international legal tenders on Wednesday.
The House Banking and Currency Committee was directed to ensure compliance and to report back to the House in two weeks for further legislative action. The resolutions were passed in response to Bamidele Salam’s motion of urgent public importance on Wednesday.
The House noted that the Governor of the Central Bank of Nigeria, speaking to the Bankers Committee at a summit on the economy in Lagos in February this year, informed the committee about the Naira’s depreciation.
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The CBN Governor told the House that the official exchange rate is N410 to the dollar, which is 7.6% lower than the N379 rate published on the CBN’s website.
It went on to say that, while the Nigerian Naira has lost 9% of its value against the US Dollar in the last six months, the South African Rand and Ghanaian Cedi have gained 11.4 percent and 1%, respectively.
The House said it was aware that the CBN has used multiple exchange rates to avoid a devaluation since last year