FX: We ‘re working to avert further Naira fall – CBN

The Central Bank of Nigeria (CBN) has assured that it will continue to make deliberate efforts in the foreign exchange sector to avert further downward slide in the value of the naira, which it said was fuelled by speculative tendencies, despite rising demand for foreign exchange for both goods and services by Nigerians.

Mr. Osita Nwanisobi, the CBN’s Director of Corporate Communications, cautioned the people Tuesday to avoid the temptation to succumb to the speculative actions of some participants in the foreign exchange market.

Mr. Godwin Emefiele, Governor of the Central Bank of Nigeria, reiterated his earlier statement in which he asked Nigerians to do their part by altering their spending habits, looking internally, and seeking inventive solutions to the country’s difficulties.

He contended that monetary policy alone could not bear the whole load of the anticipated changes required to handle Nigeria’s foreign currency issues, and he warned, “It is our collective obligation as Nigerians to shore up the value of the Naira.”

According to him, the CBN is committed to addressing the country’s foreign exchange concerns and has been working to handle both the demand and supply side challenges.

According to the spokesperson, recent CBN Bank efforts like as the RT200 FX Programme and the Naira4Dollar rebate programme have contributed to improve foreign currency inflows to the country.”

According to him, the bank’s data reveal that foreign exchange inflows under the RT200 FX Programme increased in the first and second quarters of 2022 increased significantly to about US$600 million as at June 2022.

Similarly, he stated that the Naira4Dollar incentive enhanced the number of remittances from the Diaspora during the first half of the year.

Mr. Nwanisobi went on to say “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.”

While acknowledging that there was significant demand for foreign exchange to meet the needs of manufacturers, as well as those for tuition, medical fees, and other intangibles, Mr. Nwanisobi stated that 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 inflows from the oil sector.