The Central Bank of Nigeria has revealed that it is not worried about the naira’s valuation but boosting the supply of dollars in the currency market.
This was disclosed in a report by Reuters on Tuesday morning during a virtual investor conference.
Director of Monetary Policy, Hassan Mahmud said, “We are not really bothered much about valuation. What we are worried about is the supply side and the confidence in the system.”
Mahmud added that the level of the currency is expected to adjust based on demand but that market failure had made the bank adopt a managed float regime.
In case you missed it
- The Governor of the CBN, Godwin Emefiele while addressing the press during the MPC briefing on Tuesday, 27th July 2021 announced the apex bank will discontinue the sale of forex to bureau de change operators in Nigeria.
- It also announced the stoppage of the licensing of new Bureau De Change (BDC) operators and further processing of BDC application for forex across the country.
- The CBN has been trying to curtail a dollar supply problem with policies, such as the ordering of banks to publish on their websites, the names and Bank Verification Numbers (BVN) of customers who participate in fraudulent and unscrupulous tactics to obtain foreign exchange from banks.
- The apex bank also warned that customers who do not comply with the new foreign exchange policy may face criminal prosecution.