The Governor, Central Bank of Nigeria, Godwin Emefiele, has said the factors causing the continued fall in the value of the Naira are beyond the control of the CBN and the Federal Government.
According to Punch, this, he said, informed part of the reasons the central bank chose to devalue the naira about two weeks ago, rather than continue in the defence of the nation’s currency from the external reserves.
Emefiele, who spoke at the Bankers’ dinner organised by the Chartered Institute of Bankers of Nigeria in Lagos on Saturday night, disclosed that the bank had spent a huge chunk of the external reserves in defending the naira from falling, adding that the best thing to do is to devalue it.
He said although the decision to devalue the national currency would come with pains, it would lead to benefits in the long run.
Emefiele claimed that the underlying factors that led to the dwindling supply of the dollar were mainly global and not country specific.The factors which he said were beyond the CBN and the government included the fall in the global oil prices, the end of the United States Quantitative Easing programme and the global fall in the price of other export commodities apart from the crude oil.
Moreover, he said the discovery of shale oil by the US had not also helped matters.All these, Emefiele observed, had constituted low supply of the US dollars amid high demand for them.