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Nigerian govt warns currency speculators amid FX troubles

Published

1 year ago

November 8, 2023

The Nigerian government claims it is working on policies that will strengthen the Naira amid devaluation of the currency.

Special Adviser to the President Tinubu on Economic Matters, Dr Tope Fasua claimed that there had been a steady rise in the value of the naira in the past few days, noting that the trend was not expected to continue as a result of policies being implemented by the government.

Fasua stressed that the rise in the value of the currency of a country was a sign of victory. He said: “When you want to destroy a country, destroy its currency first.”

He also cautioned currency speculators, stating that the policies being rolled out by the Central Bank of Nigeria and the government led by the President would shock some of them as the Naira was bound to improve in value.

“For those who are speculating and praying and wishing that the currency would become nonsense, I believe

“You need to listen to the agenda from the man himself (Tinubu) and you will see that the level at which he is thinking is far ahead of most of us.

“You know, he has some very great ideas coming up. Some of them are what you’ve seen reversing the fall in the value of the naira, but he has also challenged us to review forward many of the targets, for example, the idea that Nigeria’s economy will get to a trillion dollars. He wants to achieve it by 2026.

“Some people thought the naira will continue to lose value. Of course, we can already see what’s going on and who knows, maybe the naira will strengthen even further to maybe something 500 or 600. I’m beginning to see some of those”, he said.

Since the official Investors and Exporters window of the foreign exchange market opened in June 2023, the Central Bank of Nigeria instructed Deposit Money Banks to eliminate the rate cap on the naira and permit the currency to freely float against the dollar and other major world currencies.

The naira has since officially declined from N473.83 to about 800, and as high as N1,300 at the black market as a result of the growing gap between the parallel and official exchange rates of the naira. The rates have continued to experience volatility.

Related Topics:Featured Foreign exchange Nigeria

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

1 hour ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”

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Tanzania tells IMF economy projected to grow by 6% in 2025

Published

3 hours ago

December 20, 2024

Ifeoluwa Dada

Tanzania’s economy is expected to grow by about 6% in 2025 from an estimated 5.4% growth in 2024, its finance minister and central bank governor said in a letter to the International Monetary Fund (IMF).

Some of the potential risks to the performance in the near term would include intensification of regional conflicts, increased commodity price volatility, a global economic slowdown and natural disasters related to climate change, Finance Minister, Mwigulu Nchemba, and Central Bank Governor, Emmanuel Tutuba, said.

Real GDP increased by 5.3% in 2023 from 4.7% in 2022, propelled by private investments on the demand side and manufacturing, construction, and agriculture on the supply side.

Strict monetary policy and moderate food and energy prices contributed to the decline in inflation from 4.3% in 2022 to 3.8% in 2023. In 2023, the Tanzanian shilling lost 8% of its value due to a lack of foreign exchange.