Following the recent rise in foreign exchange demand by individuals and businesses in Nigeria, the Central Bank of Nigeria (CBN) has asked stakeholders to resist the urge of giving in to the herd effect of speculators in the foreign exchange market.
The Director, Corporate Communications of the CBN, Osita Nwanisobi, who made the call in Abuja recently, said the apex bank remains committed to resolving the foreign exchange problems confronting the nation as it has been working to manage both the demand and supply side of the market.
The CBN Director, however, admitting that there was actually huge demand pressure for foreign exchange to meet the needs of manufacturers as well as payment of tuition, medical fees and other invisible items.
He said the Bank was concerned about the international value of the naira, adding that the monetary authority was strategizing to help Nigeria earn more stable and sustainable inflows of foreign exchange in the face of dwindling income from the oil sector.
Nwanisobi noted that the RT200 FX Programme and the Naira4Dollar rebate scheme as well as other initiatives undertaken by the Bank have helped to increase foreign exchange inflow to the country.
In his words; “The Bank’s records showed that foreign exchange inflow through the RT200 FX Programme in the first and second quarters of 2022 increased significantly to about US$600 million as at June 2022.
““The Naira4Dollar incentive also increased the volume of Diaspora remittances during the first half of the year.”
According to him, interventions such as 100 for 100 Policy on Production and Productivity, Anchor Borrowers’ Programme (ABP) and the Non-Oil Export Stimulation Facility (NESF), among others, were also geared towards diversifying the economy…
Enhancing inflow of foreign exchange, Stimulating production and reducing foreign exchange demand pressure.
“The Bank will continue to make deliberate effort in the foreign exchange sector to avert further downward slide in the value of the naira, fuelled by speculative tendencies.” Nwanisobi said.
He reechoed the CBN Governor, Godwin Emefiele’s advice to Nigerians to adjust their consumption patterns by looking inwards and finding innovative solutions to the country’s challenges.
Nwanisobi added that monetary policy alone would not solve all the challenges surrounding foreign exchange demand and supply in the country. “It’s our collective duty as Nigerians to shore up the value of the Naira”. He noted.
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