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CBN explains why naira is appreciating


The Acting Director of Corporate Communications, CBN, Isaac Okorafor, has said the naira’s recent appreciation was a result of calculated moves that were based on intelligence reports, as well as the need to effect the right policies at the appropriate time.

Substantiating his claims, he said that when CBN placed $500 million in the market last week, only $370 million was taken, which was the real demand and it also placed another $230 million, while only $221 million was taken.

He said that with forex reserves now at near $30 billion, the apex bank had decided to do the intervention as it is more comfortable, unlike the level it was before now, which didn’t allow the bank to feel comfortable enough to do a kind of intervention needed when required.

“The CBN has done a lot of intelligence on the markets and we came to the realisation that much of what was driving the demand in the bureaux de change and the parallel market was mere bubble and speculation.

“We reasoned that since there was pressure on those two segments from people seeking personal travel allowance, medicals and tuition if we successfully address that bit, the pressure would come down. We intervened in the market and the market reacted positively and the naira started gaining strength,” he said.

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  • Prince Awele Odor

    I bet my belief that the naira will soon begin to lose value—that is, its exchange rate will soon begin to increase vis-a-vis the dollar—such that the dollar will gain what it has lost in the past days. I believe that the gain being made by the naira has been allowed by the international agencies for conspiracy and firm economic and finance containment—IMF, WB, WEF, WTO—directly and through their agents, the so-called “experts”, not excluding the CBN and the minister for finance, in order to deceive Nigerians about the capability and efficiency of the CBN and about the state of the economy.

    I hear always: “You cannot continue to do the same thing and get a different result” and the people who say this are the people who are guilty of it. They are guilty of it because they depend on the international agencies for conspiracy and firm containment for theories and practices concerning finance, economy, etc, and would not think out and apply different ideas and values strategically. To make our currency and economy good, we have to discard their theories and values and apply independent and competitive thinking, practice and values.

  • abiamone

    We are grateful for this “intelligence report” and hope it is not ephemeral.