The Central Bank of Nigeria (CBN) says market fundamentals do not support
Naira devaluation this time around.
The CBN made this known in a statement by the bank’s Director, Corporate
Communications, Mr Isaac Okorafor in Abuja on Friday.
Okorafor expressed dismay at speculative activities at the foreign exchange
market from impressions that the CBN would devalue the Naira, thereby
triggering panic in the Foreign Exchange Market.
He said these rumours were false, unwarranted and calculated to serve dubious
and selfish ends.
“We therefore wish to state that we have begun a robust and coordinated
investigation in collaboration with the Nigerian Financial Intelligence Unit (NFIU)
and related agencies to uncover the unscrupulous persons and ForeignExchange dealers who are creating this panic, and the full weight of our rules
and regulations will be meted out to them.
“This including, but not limited to, being charged for economic sabotage.
“For nearly four years, the CBN has successfully maintained relative stability in
all segments of the foreign exchange market, which has enabled investors,
households and other economic agents to plan and to conduct their genuine
foreign exchange transactions with relative ease.
“The introduction of several foreign exchange management measures side-by-
side with complementary interventions in food production and manufacturing has
drastically reduced food importation, which hitherto constituted a large chunk of
the pressure on the foreign exchange market.
“Although the outbreak of the Coronavirus led to global economic slowdown, fall
in the price of crude oil, and less inflow of dollars into Nigeria, the associated
public health concerns have also led to factory closures in China, substantial
drop in imports, widespread travel restrictions around the world, and cancellation
of many conferences, sporting events, business travels, and foreign exchange
orders.
“The size of Nigeria’s foreign exchange reserves remains robust and
comfortable, given the current realities of Nigeria’s genuine and legitimate
Foreign Exchange demand. As such, the CBN remains able and willing to meet
all genuine demand for foreign exchange for legitimate transactions,” he
explained.
The director noted that the CBN was also working with the fiscal authorities to
properly and accurately dimension (sic) the immediate and expected impacts of
the Coronavirus in order to respond comprehensively and at the same time,
ensure a sound and stable financial system conducive for job creation and
inclusive growth.
He said in light of current circumstances and macroeconomic fundamentals, the
CBN has not devalued the Naira.
According to him, the CBN will invoke the full weight of applicable sanctions on
any persons and authorised involved in such disruptive and speculative market
behaviour.
