Tinubu Unveils Next Move To Crash Dollar Below N1,500 Exchange Rate at Official, Black Markets

Tinubu Unveils Next Move To Crash Dollar Below N1,500 Exchange Rate at Official, Black Markets

  • The federal government is looking at raising $10 billion to boost foreign exchange liquidity in Nigeria
  • The government believes the move will help stabilise the Naira and also stimulate the needed economic growth
  • The Naira has been struggling in the official and unofficial foreign exchange markets against the US dollar

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

The administration of President Bola Tinubu has announced plans to raise at least $10 billion to increase foreign exchange (FX) liquidity and stabilise the Naira.

FG seeks support for naira
Tinubu govt moves to crash dollar Photo credit: Presidency
Source: Getty Images

This was made known at the inauguration of the public wealth management conference organised by the Ministry of Finance Incorporated (MOFI) on Tuesday, February 20, in Abuja.

Tinubu, who was represented by Vice President Kashim Shettima at the event, said there was a need to identify, consolidate and maximise returns on government-owned assets worth trillions of Naira, Punch reports.

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He said:

“The federal government set a goal to raise at least $10 billion in order to increase foreign exchange liquidity, a key ingredient to stabilise the naira and grow the economy.
“At the core of this is ensuring optimal management of the assets and investments of the Federal Government towards unlocking their revenue potential.
“This includes our bold and achievable plan to double the GDP growth rate and significantly increase the GDP base over the next 8 years.”

Naira to dollar exchange rate

If successful, Tinubu government's $10 billion is expected to enhance forex liquidity and also enable manufacturers, students, and companies to access necessary forex from the official market rather than the black market, which puts pressure on the Naira.

At the official market, Nigerian currency traded against the US dollar at N1551.24/$ on Tuesday, February 20, and N1,802/$1 in the black market.

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CBN governor on new gateway bank

Earlier, Legit.ng reported that the CBN announced plan to introduce a singular foreign currency (FCY) gateway bank.

The apex bank said the move would centralise all correspondent banking activities and facilitate international trade and economic activities.

The CBN also announced plan to streamline the number of BDC operators in Nigeria, improve the nation's forex inflows and stabilise the Naira.

Source: Legit.ng

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