Central Bank Governor, Godwin Emefiele listed conditions under which the naira could be devalued. He made this disclosure to convince dismayed foreign investors to return to Nigeria. As expected, investors wanted to know if the exchange rate between the naira and the dollar will be devalued.
According to Emefiele, the CBN could consider devaluing the exchange rate when the price of crude falls to between $50-$45. The price is $75 now.
He also mentioned that if this happens and the external drops to between $30 billion and $25 billion then surely they could consider moving on the exchange rate.
He, also stressed that even if they were to devalue the naira it wouldn’t be a sudden movement, rather a slow adjustment.
Emefiele reveals the concern about the threat of Shale claiming that this could be a factor in deciding whether to devalue the naira or not.