The Federal Government has stated that ongoing changes in the foreign exchange market are starting to bear fruit. The naira is stabilizing and the FX market enjoying a boom in inflows.
The government declared that it has directed appropriate regulatory and enforcement agencies to deal with speculators and other unscrupulous players inside and outside the country who are engaging in malpractices that could undermine the naira. This announcement was made in a press statement given by Mohammed Idris, Minister of Information and National Orientation, on Friday, February 23, 2024.
According to Mohammed’s remark, the latest National Bureau of Statistics (NBS) figures reveal that capital inflow into Nigeria surged by more than 66% in Q4 2023 compared to the previous quarter.
He also stated that the new reforms resulted in an inflow of $1.8 billion into the foreign exchange market last week. The statement partially reads, “The CBN has been proactive, initiating a comprehensive strategy to enhance liquidity in the forex market.”
In addition to unifying rates, the bank has cleared a considerable amount of outstanding Forex commitments and established new operational procedures for commercial banks, Bureau De Change (BDC) operators, and International Money Transfer Operators (IMTOs). According to the most recent NBS estimates, capital imports into Nigeria increased by more than 66 percent in the fourth quarter of 2023 compared to the previous quarter.
The CBN Governor added that the new reforms resulted in a $1.8 billion inflow into the FX market last week. The minister stated that the CBN’s efforts to reform and sanitize a system plagued by long-term malfeasance have faced strong opposition from speculators and unscrupulous individuals who profit from dysfunction and opacity.
To address this, the government’s regulatory and enforcement agencies have been working around the clock in recent days, collaborating to combat these efforts to undermine change. He added that the strategic cooperation has resulted in the intelligence-led discovery, investigation, and sanctions of people and organizations engaged in illicit operations and sabotage in the FX market.
The minister stated that the Federal Government will take more actions to stabilize the naira and protect the economy. He assured Nigerians that the President and his team are and will stay absolutely devoted and focused on the goal of providing immediate assistance and long-term prosperity to all Nigerians.
