CBN allays fears over foreign exchange developments

From Ngozi Onyeakusi, Lagos

For the umpteenth time, the governor of Central Bank of Nigeria (CBN), Godwin Emefiele, has assured the business community that the regulator is capable of meeting legitimate demand for dollar at the foreign exchange market.

Emefiele, who spoke at a stakeholders interactive breakfast meeting on ‘Developments in the foreign exchange market’, said there is no need to panic of the declining foreign reserve and depreciating naira, saying that the Bank will ensure the end users get value for their money through appropriate exchange rate noting that the apex bank has improved on its supervisory responsibility..

While expressing confidence that the $34 billion reserve is able to finance seven months of importation, the CBN governor promised to monitor liquidity in the banking system with aim of balancing indicators.

Consequently, he said that the net foreign exchange trading position of banks, which was last week reviewed upward to 0.5 percent from 0.1 percent, will constantly be monitored with a view to review when necessary, based on the liquidity position.

He warned those engaged in speculative activities, assuring them that they will lose their money. In giving the warning, he threatened that the CBN will revoke the licenses of banks or dealers found involved in foreign exchange malpractices.

“We want to be sure that those who come to CBN for foreign exchange are those who genuinely desire forex and not speculators”, he said.

The CBN governor had, during the last Monetary Policy Committee (MPC) meeting, said, “At this time, the naira is appropriately priced and there is no need for anybody to worry that there will be devaluation”.

Emefiele sought the collaboration of stakeholders to ensure the economy of the country is improved.