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Forex crises: CBN allays fears, warns against speculation

The Central Bank of Nigeria (CBN) has allayed fears over the current rising forex demands and the impact on the naira, saying it will strive…

The Central Bank of Nigeria (CBN) has allayed fears over the current rising forex demands and the impact on the naira, saying it will strive to meet legitimate requests for foreign exchange.

This is even as the bank warned against speculative activities of some players in the foreign exchange market.

Speaking on the rising demand for foreign exchange for both goods and services by Nigerians, the Director of Corporate Communications of the financial institution, Mr Osita Nwanisobi said, “The CBN remains committed to resolving foreign exchange issues confronting the country, and as such, has been working to manage demand and supply challenges.”

The CBN admitted that there is a “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,” but, however, said “the bank is concerned about the international value of the naira,” adding 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.”

According to him, 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.

Nwanisobi, therefore, said the bank would continue to make deliberate efforts in the foreign exchange sector to avert further downward slide in the value of the naira, which he observed was fuelled by speculative tendencies.