NLNG Corporate Caring banner First bank SME Connect Fidelity bank card banner Emerald Energy Institute Camano banner

Why the naira is getting stronger: CBN

By Rachael Ishaya/Sokoto on 03/03/2017

Gmail icon

Views: 1,822

•CBN Acting Spokesman Isaac Okorafor.
•CBN Acting Spokesman Isaac Okorafor.

 

The Central Bank of Nigeria (CBN) said the recent appreciation of the Naira against other currencies was the result of its market monitoring and intervention.

The Acting Director, Corporate Communications of the CBN, Mr Isaac Okorafor, on Thursday in Sokoto refuted the claim that the allegations by Mr Babatunde Gbadamosi on the illegal sales of foreign currencies at ridiculous rates was responsible for the change in forex policy.

Babatunde Gbadamosi, a Lagos businessman and former governorship candidate, made allegations of racketeering against the CBN and favouritism in allocation of foreign exchange to cronies of the present administration

He accused the CBN of selling dollars to some people for as low as N3 to a dollar.

Later, the CBN released a statement, clarifying that the transactions in question were third party transactions like Japanese Yen to the South African Rand, or Euros to U.S Dollars.

The CBN later went further to direct banks to file returns on the sale of foreign currencies in dollars to avoid ambiguities and misinterpretations in future.

Okorafor said also that the appreciation of the Naira was in no way connected to the allegations of Gbadamosi.

“I want to state categorically that there is no relationship whatsoever between the allegations by the so called person that dollar was being sold at 61 kobo and the current appreciation of the Naira.

“What led to the appreciation of the Naira includes the following:

“The CBN has done its intelligence work on the market and we came to the realisation that much of what was driving the demand on the BDCs and parallel market was speculation.

“We reasoned that since there is a lot of pressure on the two segments from people seeking to buy foreign currencies for BTA, tuition and medical, that if we successfully address that, the pressure will come down.

“Also, before now, the level of our reserves was not enough to make us comfortable to really do the kind of intervention that is required.

“We decided to do so now because we are a bit more comfortable with our level of reserve,” he said.

Okorafor said that since the new forex policy, the CBN had intervened with about 591 million dollars in the market which had led to Naira gaining strength.

“Let me also state as proof that when we placed 500 million dollars in the market only 370 million dollars was taken.

“That tells you that the real demand is $370 million. When we placed 230 million in the market, only $221 million was taken.

“Anybody who has run foul of the law and the security agencies have caught up with him, should go and face his or her case and stop causing confusion amongst participants in the market,” he said. (NAN)

Source News Express

Posted 03/03/2017 3:35:19 PM

 

 

CLASSIFIED ADS

 

You may also like...
FG to rehabilitate, empower 490 Nigerian evacuees from...

Delta, South East Governors, security agencies tasked on...

Commissioner pledges reform of education sector in Abia...

Expect cloudy conditions today, with chances of isolated...

World leaders gather at UN headquarters to sign...

RIGHTSView: “FRANCIS EFFECTS” IN THE AGE OF MORAL...

Nigerian Army, Ohanaeze and South East governors know...

APC chieftain makes case for Kogi’s recognition as...

30,000 entrepreneurs in Enugu to benefit from FG’s...

Oil up near $50 on bets for large...

LUTH Crisis: Management states side of the story...

INEC under pressure over Bayelsa, Kogi guber elections...

 

Latest News BREAKING: Edo APC suspends Oshiomhole following vote of no confidence Three actors stabbed on stage IGP, INEC chairman tear gassed in Lokoja Policeman who supplies drugs to Boko Haram nabbed Rat holds up flight for 12 hours Gombe Assembly deputy speaker impeached Trousers palaver: Reinstate dismissed Corps members, HURIWA tells NYSC Bayelsa poll: Court disqualifies APC deputy governorship candidate How a preacher sent gunmen into schools Drama as tricycle operators waylay senate president Camera nails policeman collecting N15,000 bribe Ghanaian traders shut more Nigerians' shops

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (561,474 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (451,692 views) Shameless Genevieve Nnaji exposes breasts in public (400,638 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (334,672 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (303,030 views) 10 cars more expensive than Jets (279,157 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (258,425 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (256,516 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (238,021 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (224,352 views) Lagos plane crash: Journalist releases victims’ names (200,988 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (197,838 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (108) Business & Economy (4,562) Business Verdict (86) Columnists (1,142) Complaints & Requests (97) Enterprise & Opportunities (219) Entertainment (702) Features (844) Global Business Monitor (493) ICT Monitor (67) International (4,194) Interview (211) Live Commentary (30) Love Matters (176) Maggie's Blog (481) News (53,870) Opinion (1,418) Pidgin (17) Politics (11,690) Religion (1,118) Sports (2,221) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera