“Naira Will Bounce Back”: CBN Explains Depreciation As Forex Dealers Sell One Dollar Above N840
- The Central Bank of Nigeria has provided an explanation for the depreciation of the Naira in foreign exchange markets
- However, the CBN believes that there will be an improvement soon and wants Nigerians to be very hopeful
- Nevertheless, the Naira continued to depreciate and sold above N840 at the official and black markets
The Central Bank of Nigeria has provided hope that the naira depreciation at the forex markets will not continue forever.
Speaking with journalists at the end of the 2-day Monetary Policy Committee meeting on Tuesday, July 25, 2023, the acting Governor, Folashodun Shonubi, explained that the current state of the forex market is Nigerian currency trying to find its original value.
Source: Facebook
Shonubi however admitted that the rising demand and insufficient supply has made it difficult for the naira.
His words:
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“The market needs to find its level and bounce back. There is pent-up demand which the market cannot cater to.
"As we ease and satisfy the pent-up demand, we expect to see more efficient markets.
"It's a market where everybody, through licensed institutions, can participate. So, we expect that over time, sooner rather than later, the volatility we've seen would normalise".
What CBN is doing to save naira
Speaking on what the apex bank is doing to help, the CBN said it has been intervening to help the naira,
"The role of the central bank is to intervene and keep the market at a fairly stable level. We have our views as to what that level is, and as the market continues to oscillate around that level, if there's a need for us to intervene either by buying or selling, that's the role of the central bank, and we will continue."
"We have started intervening, and we have been doing it for a while, and we will continue to intervene to bring the market to the levels that we believe we should be right now.
"In the short run, during these volatile times, we expect them to moderate sooner rather than later."
Naira value continue to drop
Meanwhile, at the forex market, the Naira closed at N791.42 a dollar at the official market on Tuesday, July 26, 2023.
While the closing rate is 0.07% slight improvement when compared to N792.04/$1 it closed on Monday, July 25.
The naira was sold at a high of N845 almost at the same level in the black market where traders sold one dollar at N860.
CBN speaks on license status of 2,698 BDCs as Naira falls again
The Central Bank of Nigeria has responded to reports that it withdrew over 2,000 Bureau de Change operators licenses
The reports of withdrawal come amid the continue depreciation of the naira at the official and black markets
The CBN and the Bureau De Change Operators of Nigeria spoke with Legit.ng to set the records straight
Source: Legit.ng
