Minister of Information and National Orientation, Mohammed Idris on Friday revealed that $1.8 billion flowed into the forex market after the new reforms by the Nigerian government.
Idris said this in a statement, highlighting that President Bola Ahmed Tinubu’s second most far-reaching pronouncement was his promise that the Central Bank of Nigeria (CBN) would work towards a unified exchange rate.
He said in line with Tinubu’s vision for a more transparent and equitable monetary policy, yet without jettisoning its operational independence, the CBN took the very bold step of loosening control of foreign exchange rates.
The Minister added that the Apex bank in the process allowed access to foreign exchange to take place at market rates determined on the principle of ‘willing seller willing buyer.’
“As a government, we are not under any illusion that these policy moves are silver bullets, or that nothing else is required,” Idris said.
“We understand that these are foundational fiscal and monetary policy moves, upon which we must now build the superstructure of true economic growth and prosperity.
“As respected economists and experts have acknowledged, these foundational reforms will be difficult and painful for Nigerians in the short-term.
“At the same time, there is the consensus that they are inevitable, given just how much they have held back robust and lasting economic growth.”
Idris said the problems that the Federal government is solving are no doubt multifaceted, intertwined, and deep-rooted, requiring creative, strategic, decisive and multi-pronged solutions with these bold moves being implemented in full alignment with what is required.
According to the Minister of Information, the CBN has been proactive, initiating a comprehensive strategy to enhance liquidity in the forex market.
In addition to unifying the rates, the bank has also cleared a significant amount of outstanding Forex obligations, and outlined new operational mechanisms for commercial banks, Bureau De Change (BDC) operators and International Money Transfer Operators (IMTOs).
He said it is heartwarming to note that Nigerians are starting to see the results and indeed, the naira is stabilizing, and the foreign exchange market is seeing a surge of inflows.
“The latest NBS figures show that capital importation into Nigeria rose by over 66 percent in Q4 2023, compared with the preceding quarter,” Idris stated.
“The CBN Governor has also highlighted the fact that $1.8 billion flowed into the forex market last week, on the back of the new reforms.
“Relevant regulatory and security agencies have been directed to remain vigilant to ensure that malpractices capable of undermining our currency are averted and that those engaged in these acts are brought to book.”
Idris said the government will not allow its efforts to be jeopardised even as the emerging stability of the naira is in the interest of all Nigerians.
He also implored Nigerians to be assured that the government will continue to take further steps to stabilize the naira and safeguard the economy.
