Nigerians have been warned by the Central Bank of Nigeria (CBN) not to fall prey to the speculative practices of some participants in the foreign exchange market.
The recommendation was made in a statement on Friday by Mr. Osita Nwanisobi, Director of Corporate Communications at the CBN, against the backdrop of increasing foreign exchange demand for both goods and services.
According to Nwanisobi, the CBN is still dedicated to finding a solution to the country’s problems with foreign exchange and has been trying to address both supply and demand difficulties.
He claimed that the value of the Naira on a global scale worried the top bank.
In response to declining inflows from the oil sector, he said that the monetary authority was planning to assist Nigeria in generating more steady and sustainable foreign exchange inflows.
According to the director, recent CBN measures like the “RT200 FX” Program and the “Naira4Dollar” rebate plan have aided in boosting foreign exchange influx.
He said that according to the CBN’s data, foreign exchange inflow through the RT200 FX Programme dramatically increased to nearly 600 million dollars by the end of June 2022 from the first and second quarters.
“In a similar vein, throughout the first half of the year, the Naira4Dollar incentive also increased the volume of remittances from the diaspora.
Additionally, there are initiatives like the Non-Oil Export Stimulation Facility, the Anchor Borrowers’ Programme (ABP), and the 100 for 100 Policy on Production and Productivity (NESF).
They also aim to diversify the economy, increase foreign exchange inflow, boost production, and relieve pressure from foreign exchange demand, he added.
Nwanisobi noted that speculative inclinations were causing the present depreciation of the Naira.
In order to prevent the value of the currency from continuing to decline, he stated that the central bank would continue to make purposeful efforts in the foreign exchange sector.
The director reaffirmed a previous stance taken by Mr. Godwin Emefiele, Governor of the Central Bank of Nigeria, who urged Nigerians to play their part by moderating their consumption habits.
According to him, monetary policy cannot fully support the anticipated modifications required to address Nigeria’s foreign exchange issues.
“We ought to examine ourselves and come up with fresh answers to the problems facing the nation.
As Nigerians, it is our joint responsibility to support the Naira’s value, he remarked.