Forex reforms: FG says naira already stabilizing, will go after saboteurs undermining the currency

Forex reforms: FG says naira already stabilizing, will go after saboteurs undermining the currency

The Federal Government has insisted that the ongoing reforms in the foreign exchange market is beginning to yield results, with the naira stabilizing and the forex market experiencing surge of inflows.

The government stated that it has directed relevant regulatory and enforcement agencies to deal with speculators and other unscrupulous players within and outside the country who are engaged in malpractices capable of undermining the naira.

This disclosure is contained in a press statement issued by the Minister of Information and National Orientation, Mohammed Idris, on Friday, February 23, 2024.

Mohammed in the statement said that the latest figure from the National Bureau of Statistics (NBS) showed that capital importation into Nigeria increased by over 66% in Q4 2023 when compared with the previous quarter.

He also noted that the new reforms have led to an inflow of $1.8 billion into the foreign exchange market last week.

CBN proactive, forex market stabilizing

The statement partly reads, ‘’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).

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‘’It is heart-warming to note that we are starting to see the results. 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.

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.’’

Government going after saboteurs, speculators

• The minister added, ‘’Sadly, as with any effort to reform and sanitise a system entrenched in long-term malpractice, the CBN’s efforts have been met with ferocious resistance from speculators and other unscrupulous players within and outside our country, who profit from dysfunction and opacity.
• ‘’To tackle this, regulatory and enforcement agencies of government have been working round the clock in the past few days, joining forces to address these efforts at undermining the reforms. That strategic alliance has led to the intelligence-led identification, investigation and sanctioning of individuals and organizations involved in illegal activities and sabotage within the forex market.
• ‘’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. The government will not allow its efforts to be jeopardised.
• ‘’The emerging stability of the naira is in the interest of all Nigerians.”

Government to take further steps

The minister assured that the Federal Government will continue to take further steps to stabilize the naira and safeguard the economy.

• He said, ‘’Nigerians should rest assured that the government will continue to take further steps to stabilize the naira and safeguard our economy.
• ‘’We will continue to seek the patience and understanding of Nigerians as we push through these difficult times, into a season of abundant benefits and truly renewed Hope. As the President never fails to emphasize, these headwinds we are facing are only temporary, and, collectively, we will surely overcome.
• ‘’The President and his team are and will remain resolutely committed and focused on the task of bringing immediate relief and enduring prosperity to all Nigerians.’’

Forex reforms: FG says naira already stabilizing, will go after saboteurs undermining the currency