July 29, 2022

The Central Bank of Nigeria (CBN), has advised Nigerians not to succumb to speculative activities of some players in the foreign exchange market.

Mr. Osita Nwanisobi, CBN’s Director, Corporate Communications CBN, gave the advice in a statement on Friday, against the backdrop of rising demand for foreign exchange for both goods and services.

Nwanisobi said that the CBN remained committed to resolving the foreign exchange issues confronting the nation, and had been working to manage both the demand and supply challenges.

He said that the apex bank was concerned about the international value of the Naira.

He said 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.

The director said that recent initiatives undertaken by the CBN, like the “RT200 FX’’ Programme and the “Naira4Dollar’’ rebate scheme had helped to increase foreign exchange inflow.

He said that CBN’s records showed that foreign exchange inflow through the RT200 FX Programme in the first and second quarters of 2022 increased significantly to about 600 million dollars as at June.

“Similarly, the Naira4Dollar incentive also increased the volume of diaspora remittances during the first half of the year.

“There are also interventions such as 100 for 100 Policy on Production and Productivity, Anchor Borrowers’ Programme (ABP) and the Non-Oil Export Stimulation Facility (NESF).

“They are also geared toward diversifying the economy, enhancing inflow of foreign exchange, stimulating production and reducing foreign exchange demand pressure,’’ he said.

Nwanisobi observed that the current depreciation of the Naira was fuelled by speculative tendencies.

He said that the apex bank would continue to make deliberate effort in the foreign exchange sector to avert further downward slide in the value of the currency.

The director reiterated an earlier position of the CBN Governor, Mr. Godwin Emefiele, who urged Nigerians to play their role by adjusting their consumption patterns.

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

“We should look inwards and find innovative solutions to the country’s challenges.

“It is our collective duty as Nigerians to shore up the value of the Naira,” he said.