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Presidency Supports CBN’s Moves To Boost Naira, Targets Currency Racketeers

Published

8 months ago

Apr 10, 2024.

Presidency Supports CBN’s Moves To Boost Naira, Targets Currency Racketeers.
Recent CBN measures lead to significant rebound of the naira against the dollar.
Government commits to tackling inflation and boosting the economy through regulatory reforms and crackdown on illicit activities.

EKO HOT BLOG reports that the Presidency has thrown its weight behind the concerted efforts of the Yemi Cardoso-led Central Bank of Nigeria (CBN) to stabilize the naira, pledging further actions to clamp down on currency racketeers.

In line with President Bola Tinubu’s approach, the administration is intensifying its campaign against malign actors in the foreign exchange market.

EDITOR’S PICKS

Special Adviser to the President on Media and Publicity, Ajuri Ngelale, announced the administration’s stance, highlighting recent CBN measures aimed at halting the naira’s free fall.

These measures have led to a significant rebound of the naira, with its value rising from 1,900/dollar in late February to nearly 1,200/dollar on Tuesday at the parallel market.

Key reforms implemented by the CBN include unification of exchange rate windows, liberalization of the FX market, and clearance of FX backlog obligations for banks and airlines. These policies have adversely affected racketeers and currency speculators in the FX market and banking sector.

Boost Naira

Ngelale affirmed the administration’s commitment to sustain the momentum, emphasizing that regulatory agencies will pursue racketeers and other malign actors intent on sabotaging government efforts. Beyond stabilizing the exchange rate, the President aims to tackle inflation and bring it to a considerable rate.

The Presidency expressed confidence that resumption of operations by private and government-owned crude oil refineries would bolster revenue and improve the economy. Additionally, investigations into questionable foreign exchange allocations and forward contracts are underway, aimed at rectifying distortions in the retail segment of Nigeria’s foreign exchange market.