IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 25 Nov 2014 | Removal date: open ended
Still in force

Competitive devaluation

On 25 November 2014, the Central Bank of Nigeria (CBN) devalued the Naira by nearly 10 per cent and increased its interest rate from 12 to 13 per cent. The measure should counter the effect of falling oil prices as well as foreign investors selling Nigerian securities, i.e., shrinking foreign exchange accounts.
 
Several news sources reported the central bank governor saying: 'The depreciation at both the interbank and the BDC segments largelyreflected recent demand pressures arising from the falling oil pricesand dwindling external reserves. As part of the demand managementmeasures, the Bank in two recent circulars excluded certain import itemsfrom the rDAS window. Despite the tight measures, the high demand for foreign exchange hascontinued unabated, This demand does not seem to have any bearing on thegenuine foreign exchange needs of the country, which the Bank standsready and has the capacity to meet. The current level of externalreserves provides approximately 7 months of imports cover."
 
After the Presidential elections in February 2015, the CBN devalued the Naira again. Please, consult measure no. 9708under Related Measures.

AFFECTED COUNTRIES

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