CBN Confirms New Exchange Rate: N410.25/$. The Central Bank of Nigeria (CBN) has confirmed NAFEX Investor & Exporter forex window rate is now Nigeria’s official benchmark exchange rate.
The apex bank reported an official exchange rate of N410.25/$1and referenced it as “NAFEX Exch, Rate (USD) as at Monday, May 24, 2021” on its website.
Earlier in this month, the CBN removed the exchange rate of N379/$1 from its website, conforming with the bank’s policy that the NAFEX (Nigerian Autonomous Foreign Exchange Rate Fixing) rate is now the default reference exchange rate for official and legitimate transactions.
Also, the Central Bank of Nigeria’s (CBN) monetary policy committee has voted to keep the monetary policy rate at 11.5 percent.
The CBN governor, Godwin Emefiele, declared the committee’s decision at the end of a two-day meeting at the CBN headquarters on Tuesday, May 25.
The liquidity ratio was also held at 30% and the cash reserve ratio (CRR) was kept at 27.5 percent by the committee.
Emefiele disclosed that due to the drop in crude oil earnings and the associated reduction in foreign portfolio inflows significantly affected the supply of foreign exchange into Nigeria.
He further explained that, “In order to adjust for the decrease in supply of foreign exchange, the naira depreciated at the official window from N305/$ to N360/$ and now hovers around N410/$”.
In April 2017, the CBN established the I&E forex window as part of efforts to deepens the foreign exchange market and accommodate all forex obligations .
The purpose of the window was to boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.