CBN to intervene in volatile forex market, as dollar rate rises by N329

Acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, has disclosed that the financial regulator will intervene in the foreign exchange (Forex) market.

The foreign exchange market has been more volatile than stable this year, with the naira depreciating in value by 71.4 per cent, as the rate for the United States Dollar increases by N329.92 kobo in the official market.

As of Tuesday, the dollar rate closed at N791.42/$1 in the Investors’ and Exporters’ window of the official market, far above the N461.50/$1 it closed at in 2022.

Also, since the devaluation of the naira on June 14, the Nigerian currency has depreciated by 67.79 per cent, as the exchange rate between the naira and the USD has increased from N471.67/$1 (the day before devaluation) to N791.42/$1.

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With the naira shedding more value to the dollar in the foreign exchange rate market, Shonubi said from time to time, the CBN will be intervening.

He projects that the volatility in the foreign exchange market will normalize over a short period due to the monetary policies of the CBN.

“Role of CBN is to intervene and keep the market at a fairly stable level. We have our view as to what that level is,” Shonubi stated.

Speaking further the CBN chief averred that: “As the market continues to oscillate around that level. If there is a need for us to intervene either by buying or selling, that is the role of the Central Bank.”

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