B-O-O-M: CBN Blows $1b in 12 Days Defending the Naira, Emefiele Says ‘Don’t Panic’

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The Central Bank has spent an estimated $1billion in the last 12 days in its bid to defend the Naira. A check on its website reveals external reserves has dropped from $34,378,477,248 on January 28 to $33,314,373,746 as at February 9. CBN data reveals it had sold US$ 235,107,592.83 (26th of January), US$ 249,980,022.20 (29th of January), US$ 199,063,839.71 (February 2), US$ 199,637,495.11 (February 4), US$ 199,992,089.13 (Feb 9) respectively totaling just over $1b in sales in 5 deals.

The CBN Governor has been called to action in the last few days meeting with the organized private sector, local and foreign media. He was quoted today on CNBC Africa as saying “We are not in the best of times but there’s no need to panic,” and also denied holding an emergency meeting with the Monetary Policy Committee. Godwin Emefiele has consistently said the Naira is “appropriately” priced even though one is not really sure which of the prices he is referring too. CBN still retains N168 (+or-5) even though the interbank and parallel markets trade well above N200.