N1,500/$: FG Moves To Boost Naira's Value In Foreign Exchange Markets

N1,500/$: FG Moves To Boost Naira's Value In Foreign Exchange Markets

  • The Nigerian government has revamped the national gold purchase programmes in a bid to increase Nigeria's reserves
  • The government believes the effort will help the naira bounce back in value in the foreign exchange markets
  • The naira in the last few months has been struggling in value against the US dollar in official and unofficial markets

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Dele Alake, the minister of solid minerals development, has revealed that the National Gold Purchase Programme (NGPP) increased Nigerian foreign reserves by $5 million.

The minister disclosed this in a statement via X on Sunday, June 23, 2024.

FG expects naira value to rise with gold
FG plans to use gold to boost naira's value Photo credit: Presidency
Source: Getty Images

Gold to help boost naira's value

According to Alake, he recently presented the first batch of the gold bars to President Bola Tinubu.

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He noted that the NGPP, which has the president's full backing, can potentially boost naira's value in the foreign exchange markets.

The tweet reads:

"I am delighted to announce that the National Gold Purchase Programme, designed to bolster our nation's reserves and enhance the value of the Naira, is advancing remarkably.
"I recently had the privilege of presenting the latest gold bars to His Excellency, President Bola Ahmed Tinubu.
“The bars were sourced from artisanal and small gold miners and refined by an agency of our Ministry, the Solid Minerals Development Fund.
"I am also proud to declare that this inaugural commercial transaction has led to a significant boost of over US$5 million in Nigeria’s foreign reserve assets, the refinement of more than 70 kilograms of gold to meet the London Bullion Market Good Delivery Standard, and the successful aggregation of locally mined gold, infusing approximately N6 billion into the rural economy."

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Nigerian foreign reserves

Nigeria's foreign reserve is very important in the Central Bank of Nigeria's (CBN) fight to defend the naira's value.

According to the latest data from CBN's website, Nigeria's foreign reserves stand at $33.64 billion as of Thursday, June 20, 2024.

CBN issues new directives on street trading

Legit.ng previously reported that the CBN banned street trading of foreign currencies by Bureau de Change (BDC) operators, citing the need to regulate the foreign exchange market properly.

CBN's director of risk management, Blaise Ijebor, said street trading of foreign currencies is not allowed as the apex bank does not want BDCs under trees.

He said the traders should be in offices where customers can come in and change their currencies.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

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Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.