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Alade: No Plans to Devalue Currency

The acting Governor of the Central Bank of Nigeria (CBN), Dr. Sarah Alade said Friday that the apex bank had no immediate plans to devalue the currency.
 
Also, Minister of Trade and Investment, Dr. Olusegun Aganga has assured that the change of leadership in the apex bank would not negatively impact on the economy and banking sector.
 
Alade also reaffirmed the CBN’s commitment to continually intervene in the interbank foreign exchange market to ensure the stability and preservation of the Naira.
 
Speaking to journalists for the first time since assuming office as CBN acting governor, she reassured stakeholders including the international community that the recent changes at the apex bank would not in any way affect its monetary policy stance and pursuit of maintaining price and financial system stability.
 
She said the bank would continue to carry out its responsibilities by reacting appropriately to emerging challenges and upholding the trust bestowed on it.
 
Alade further assured that with the current levels of reserves at seven months of import cover as at December 2013, the apex bank’s ability to intervene in the foreign exchange market remained unquestionable. She described the recent distortion in exchange rate market as a temporary and expected reaction to the suspension of former CBN Governor, Mallam Sanusi Lamido Sanusi.
 
Alade however noted that the CBN’s quick intervention had since brought normalcy back to the forex market.
In the wake of the announcement suspending Sanusi from office, the naira had fallen sharply from N162.9 to N170 to the dollar at the interbank market. It later closed at N163 as a result of the intervention of the CBN.
 
The acting CBN Governor said:”We would continue to defend the naira; we will continue to intervene in the market until we achieve the stability which we want. What we had with the temporary rise in exchange rate in the market was expected- it was a reaction but we have since brought it back. We will do all we can to return stability in the market to support the currency.”
 
Continuing, she said:”I wish to assure all our stakeholders that the Bank’s policies and operations will continue to be firmly anchored on the realisation of its principal objectives in line with the provisions of the CBN Act 2007.
 
 
“Thus, with the principal goal of ensuring monetary and price stability, policy measures would continue to be consistent with sustainable non-inflationary growth, through the adoption of appropriate mix of monetary policy measures and coordination with fiscal policy”, she assured.
 
She added that the CBN currently has the capacity to meet the demands of all foreign exchange users and had no plans to devalue the Naira.
 
She said the Nigerian economy has remained unequivocally strong, sound and resilient over time.
 

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