Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele is scheduled to appear before the Senate on Tuesday, as the legislative chamber begins investigation into the continuous fall of the naira.
Emefiele has been summoned to explain the fall of the naira in the unofficial market before the Senate by 11am on Tuesday, according to Senate Leader, Ali Ndume.
The central bank of Africa’s biggest oil producer has all but pegged the local currency at N197-N199 per dollar since March last year after it fell to a record low amid a rout in crude prices. The naira has still weakened on the parallel market used by non-banks for the last several months as Emefiele’s policies have led to a shortage of dollars in the country, which imports almost all its manufactured goods.
The black market rate fell to N300 against the dollar for the first time last week and was at a record N305 on Thursday.
“In view of this worrisome situation and the fact that we all know that this country depends so much on imported materials and even food, there is a need for this senate to, as a matter of urgency, invite or summon the governor of CBN to explain this situation and to provide the necessary solution,” Ndume said.
Speculation is mounting that the central bank will devalue the currency, with the move possibly being announced at the end of the Monetary Policy Committee meeting on January 26, Alan Cameron, a London-based economist at Exotix Partners, said in a research note. Three-month non-deliverable naira forwards weakened 4.3 percent to a record 251 per dollar on January 12, before paring losses