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Desperate to boost naira, CBN to push out more dollars

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CBN yields to pressure, modifies forex policy

The Central Bank of Nigeria (CBN) may have concluded plans to offer for sale a minimum of $650 million weekly in the next five months.

This, according to a source at the apex bank is aimed at shoring up the value of the local currency, the naira.

The highest amount the CBN has ever pushed through the foreign exchange market has been $350 million and that was not even regular.

The measure would also help in easing the backlog of dollar demand, which some dealers and buyers have been raising issues over since November 2016.

Last Wednesday, the apex bank directed all commercial lenders to bid in a special currency auction targeted at clearing the backlog of dollar obligations for the manufacturing, airlines, agriculture and petroleum sector.

It also insisted that erring banks in submission of records of sales and targeted sector would be sanctioned, including being banned from participation in the interbank market.

Read also: SEC slams life ban on Okumagba, Edozie, BGL over N6bn fraud

Mr. Isaac Okorafor, CBN spokesman said a number of banks had already received queries on their past deal on the foreign exchange market, but refused to name them.

Reports say the CBN’s plan to sell more dollars periodically is the first major effort that could see to the recovery of lost ground of naira, which since January has been exchanging for about N497 to a dollar at the parallel market and N398 at the interbank market.

Government officials maintain that Nigeria’s recession, caused mainly by the oil price drop and crisis of the Niger Delta region, has caused scarcity of dollars needed to fund imports and other economic activities.
The attempts at borrowing from international institutions and governments have not been possible, as a result of lack of an economic blue print to guarantee recovery of the facility.

As a means of assistance the oil cartel, OPEC, has exempted Nigeria from oil output cuts, but that is yet to yield the needed results.

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  1. yanju omotodun

    February 2, 2017 at 4:02 pm

    As a means of assistance the oil cartel, OPEC, has exempted Nigeria from oil output cuts, but that is yet to yield the needed results.

    Thanks to Opec for understanding our plights, I hope we will maximise this opportunity to the fullest.

    • JOHNSON PETER

      February 2, 2017 at 4:28 pm

      Read the last statement , “but that is yet to yield the needed results”.
      Nigeria will not utilize anything as Niger Delta avengers wont allow that.

  2. Margret Dickson

    February 2, 2017 at 4:29 pm

    I can see Emefiele is trying to gamble Nigeria out of recession and trying to secure his job by all means, he’s offering us additional 5 months to test run his gamble. This man is not worthy of being the CBN governor

    • Balarabe musa

      February 2, 2017 at 4:32 pm

      Remove him now as your father is competent for the post. They will never cease saying that rubbish.

    • chichi emerue

      February 3, 2017 at 4:41 am

      His not because his making things difficult in this country

  3. Animashaun Ayodeji

    February 2, 2017 at 4:32 pm

    “The highest amount the CBN has ever pushed through the foreign exchange market has been $350 million and that was not even regular,” and CBN is ready to push out $650 million weekly for 5 months, this country is a joke! Our leaders are great comedians. OKAY, let’s see how it will play out

  4. Roland Uchendu Pele

    February 2, 2017 at 4:43 pm

    Now, seeing the rate at which Dollar is needed and sought for in this country, one could rightly mistake the Dollar as the official Nigerian currency. Could we just change from Naira to Dollar already, and let this sufferings across the country seize for once!

    • Nonso Ezeugo

      February 3, 2017 at 4:48 am

      May God punish emefiele for trying to do such a thing to this country.this suffering is tomuch and he wants to add more.is high time he step down

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