Forex: CBN to curtail further downward slide of the Naira

The Central Bank of Nigeria has cautioned Nigerians to resist the urge to succumb to speculative activities of some players in the foreign exchange market, as it puts in place measures to curb the downward slide of the Naira.

The Naira has continued to crash on the foreign exchange window, exchanging for as high as N700 to a dollar as at Friday.

The CBN attributed this to the rising demand for foreign exchange for various purposes including business needs, education fees and health.

In a statement on Friday, the Director, Corporate Communications, CBN, Mr Osita Nwanisobi, said the CBN remained committed to resolving the foreign exchange issues confronting the nation adding that the bank has been working to manage both the demand and supply of forex.

Nwanisobi said that the “bank would continue to make deliberate efforts in the foreign exchange sector to avert further downward slide in the value of the naira fuelled by speculative tendencies.”

While admitting that there was huge demand pressure for foreign exchange to meet the needs of manufacturers as well as those for the payment of tuition, medical fees and other invisibles, Nwanisobi said the CBN was concerned about the international value of the naira.

He added that the monetary authority was strategising to help Nigeria earn more stable and sustainable inflows of foreign exchange in the face of dwindling inflows from the oil sector.

Specifically, he noted that recent initiatives undertaken by the bank such as the RT200 FX Programme and the Naira4Dollar rebate scheme had helped to increase foreign exchange inflows to the country.

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According to him, the bank’s records showed that foreign exchange inflows through the RT200 FX Programme in the first and second quarters of 2022 increased significantly to about $600m as at June 2022. He disclosed that the Naira4Dollar incentive also increased the volume of diaspora remittances during the first half of the year.

‘Look Inwards’

Furthermore, he said interventions such as 100 for 100 Policy on Production and Productivity, Anchor Borrowers’ Programme and the Non-Oil Export Stimulation Facility, among others, were also geared towards diversifying the economy, enhancing inflow of foreign exchange, stimulating production and reducing foreign exchange demand pressure.

Reiterating an earlier position of the CBN Governor, Mr Godwin Emefiele, he urged Nigerians to play their roles by adjusting their consumption patterns, looking inwards and finding innovative solutions to the country’s challenges.

He said monetary policy alone could not bear all the burden of the expected adjustments needed to manage the challenges around Nigeria’s foreign exchange.

“It’s our collective duty as Nigerians to shore up the value of the naira,” he said

PR/Punch/Hauwa Abu