Speculators Resist CBN’s Forex Market Reforms, Says FG

The federal government has announced that the Central Bank of Nigeria’s (CBN) efforts to reform the foreign exchange (FX) market have been met with resistance from speculators and other unscrupulous players.

The Minister of Information and National Orientation, Mohammed Idris, stated that the government is not under any illusion that these reforms are silver bullets, but they are foundational fiscal and monetary policy moves that will help strengthen the naira and boost liquidity.

Some of the policies implemented by the CBN include the unification of all segments of the official forex market on June 14, 2023, the removal of the allowable limit of exchange rate quoted by the international money transfer operators (IMTOs), and the limit placed on the repatriation of proceeds by international oil companies.

While these moves are necessary and in alignment with what is required, Idris acknowledged that they would be difficult and painful for Nigerians in the short-term.

However, he emphasized that the government would continue to take further steps to stabilize the naira and safeguard the economy.

According to the latest NBS figures, capital importation into Nigeria rose by over 66 percent in Q4 2023 compared to the preceding quarter, indicating that the reforms are starting to yield results.

In response to the resistance from speculators, the government’s regulatory and enforcement agencies have been working around the clock to address these efforts to undermine the reforms.

Intelligence-led identification, investigation, and sanctioning of individuals and organizations involved in illegal activities and sabotage within the forex market have been carried out.

The government has directed relevant regulatory and security agencies to remain vigilant to ensure that malpractices capable of undermining the currency are averted and that those engaged in such acts are brought to book.

The emerging stability of the naira is in the interest of all Nigerians, and the government will continue to take further steps to stabilize the currency and safeguard the economy.