CBN Denies Naira Devaluation, Warns Speculators.
AMINA HUSSAINI, Abuja
The Central bank of Nigeria (CBN) Thursday night denied the rumors of a devalued Naira stressing that the current market realities are not in support of such action.
The apex bank in a terse warning to market speculators to desist from such rumors noted that it has commenced investigation together with the Nigerian Financial Intelligence Unit (NFIU) and related agencies to uncover the unscrupulous persons and foreign exchange dealers behind the speculation, warning that sanctions including charges will be brought against them.
Isaac Okorafor, director, corporate communications, CBN, in a statement noted a list of measures in place adding that the bank has robust foreign reserves to defend the Naira.
The bank which noted the unwarranted panic in the foreign exchange market owing to the rumors reminded Nigerians of the relative stability in all segments of the foreign exchange market, which has enabled investors, households and other economic agents to plan and to conduct their genuine foreign exchange transactions with relative ease.
“The introduction of several foreign exchange management measures side-by-side with complementary interventions in food production and manufacturing has drastically reduced food importation, which hitherto constituted a large chunk of the pressure on the foreign exchange market.”
While he admitted that the Coronavirus pandemic has led to the global economic meltdown, he also noted that the outbreak has slowed down the demand for forex.
“Acknowledging that the outbreak of the Coronavirus led to the global economic slowdown, fall in the price of crude oil, and less inflow of dollars into Nigeria, the associated public health concerns have also led to factory closures in China, substantial drop in imports, widespread travel restrictions around the world, and cancellation of many conferences, sporting events, business travels, and FX orders”.
Okorafor assured Nigerians of the ability of the bank to measure up in a situation like this and stated that the size of Nigeria’s foreign exchange reserves remains robust and comfortable to meet the current realities of Nigeria’s genuine and legitimate foreign exchange demand.
“For the avoidance of doubt, the CBN is also working with the fiscal authorities to properly and accurately dimension the immediate and expected impacts of the Coronavirus in order to respond comprehensively and at the same time, ensure a sound and stable financial system conducive for job creation and inclusive growth”.
While noting that the CBN has not devalued the Naira in light of current circumstances and macroeconomic fundamentals, Okorafor warned the apex bank will invoke the full weight of applicable sanctions on any persons and authorized dealers found to be involved in such disruptive and speculative market behavior.
Comments are closed.