FX: Policy Group Rates Tinubu, CBN’s Impact in Naira, Dollar Battle

FX: Policy Group Rates Tinubu, CBN’s Impact in Naira, Dollar Battle

  • A policy think tank has praised President Bola Tinubu and the Central Bank of Nigeria (CBN) for their efforts in stabilising and boosting the value of the Naira, preventing its further decline
  • The group emphasised that the current upward trend in the Naira's value results from positive policies implemented by the Federal Government and the CBN
  • In a statement issued in Abuja on Wednesday, the group asserted that President Tinubu's administration and the CBN should be applauded for their measures targeting both the supply and demand aspects of the foreign exchange market

Legit.ng journalist Segun Adeyemi has over 9 years of experience covering political events, civil societies, courts, and metro

FCT, Abuja - The Independent Media and Policy Initiative (IMPI) announced that Nigeria's fiscal and monetary authorities have devised strategies to strengthen the economy.

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In a statement released on Wednesday, March 27, IMPI's Chairman, Niyi Akinsijiu, praised President Bola Tinubu and the Governor of the Central Bank of Nigeria, Yemi Cardoso, for implementing policies that tackle the foreign exchange market's supply and demand aspects.

President Tinubu has vowed to strengthen the Naira against the dollar
The Nigerian Naira has recently risen against the US Dollar over the past few weeks. Photo Credit: The Presidency Nigeria
Source: Facebook

The group said:

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“We need to, as a matter of fact, from the outset, commend the dexterity of the CBN Governor, Olayemi Cardoso, in conceiving policies and deploying them to time and target as he virtually willed into existence a new monetary policy and exchange rate ecosystem by using policy actions to address both the supply and demand sides of the domestic foreign exchange market.”

The group emphasised a significant policy introduced on January 31st as part of a series of market regulation measures.

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Naira gains against dollar: Nigerian man lists reasons why CBN is getting it right

This policy required Nigeria's Deposit Money Banks (DMBs) to bring their Net Open Position (NOP) within the prudential limit by January 1st, 2024.

The Central Bank of Nigeria's (CBN) directive regarding NOP mandates that no bank can hold a long position exceeding 20%, meaning they cannot have more foreign currency assets than liabilities by more than 20%.

This mandate aims to prompt banks to start selling off approximately $7 billion worth of foreign currency assets they have held in long positions, addressing concerns about the supply of foreign exchange.

Presidency issues warning to currency speculators

President Bola Tinubu's Information and Strategy Special Adviser, Bayo Onanuga, cautioned speculators to swiftly sell off their dollars to prevent potential losses.

The advice came in response to the Central Bank of Nigeria's announcement that it has resolved the $7 billion foreign exchange backlog from Governor Yemi Cardoso's tenure.

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BDC operators tell CBN what to do for naira to continue gaining against dollar

The CBN's acting director of Corporate Communications, Hakama Sidi Ali, recently affirmed that all legitimate FX backlog claims have been settled.

Source: Legit.ng

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