Naira depreciation on the top agenda as MPC meets today

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), which commences its 245th meeting today (Thursday) is expected to take critical decisions that would determine the fate of the naira, which has been under intense pressure at the parallel market in the past few weeks.

The two-day meeting holds in Abuja. The MPC, which has operational independence in determining monetary policy will be meeting for the fourth time this year. The naira, which sells for N196.95 to a dollar on the interbank market, goes for about N240 to a dollar at parallel market points across major cities in the country.

The pressure faced by the naira at the parallel market was provoked by the CBN’s restriction of importers of 41 products from accessing forex at the official foreign exchange market. Some of these items include rice, wheel barrows, head pans, cement, margarine, palm kernel/vegetable oil, meat and processed meat products, vegetable and processed vegetable products, poultry, private airplanes/jet, Indian Incense, toothpicks, tinned fish in sauce (Geisha/Sardines), among others.

The depreciation of the naira had heightened the debate on the devaluation of the naira.