The Central Bank of Nigeria (CBN) is hard at work to find solutions for the ongoing pressure facing Nigeria’s currency, the Naira. Here’s what you need to know:
CBN Governor, Oluyemi Cardoso, has stated that the bank is currently assessing the backlog to differentiate between genuine demand and speculative hoarding. This evaluation aims to create effective strategies.
The CBN is exploring innovative financial approaches to clear the short to medium-term backlog. This includes mechanisms for forex rate unification under a willing buyer and willing seller arrangement.
The CBN emphasizes its commitment to allowing market forces to determine exchange rates based on the principle of a willing buyer and a willing seller. Reference foreign exchange rates from recognized platforms like the CBN website for transparency.
The CBN will intervene to enhance liquidity in the Foreign Exchange Market, with the goal of reducing interventions as market liquidity improves. Importers of previously restricted items are now permitted to purchase foreign exchange.
The CBN has set a goal to achieve a single FX market. Ongoing consultations with market participants are in progress to reach this objective.
A Bureau de Change operator noted that the dollar is still exchanged for N1045, emphasizing the need for proactive measures, especially for students abroad and manufacturers struggling to access dollars.
Dr. Muda Yusuf of the Centre for Promotion of Private Enterprises (CPPE) welcomed the CBN’s decision to discontinue the forex exclusion policy on the 43 items. This move aims to enhance transparency and foreign exchange transaction disclosures.
While challenges persist, the CBN’s efforts are focused on finding practical solutions to stabilize the Naira. Stay tuned for updates