The Presidency on Tuesday said the concerted efforts of the Yemi Cardoso-led Central Bank of Nigeria aimed at stabilising the naira aligns with President Bola Tinubu’s “multi-faceted approach to ridding the nation’s foreign exchange (FX) market of malign actors and sharp practices.”
It also vowed to continue its campaign against racketeers, urging Nigerians to expect a stronger naira that would reflect in a significant drop in the prices of essential commodities by the first quarter of 2025.
Ajuri Ngelale, the special adviser to the President on Media and Publicity, said this, against the backdrop of the recent series of measures rolled out by the central bank to halt the naira free fall and return the local currency to its fair value.
The CBN had rolled out several circulars and directives, leading to the rebound of the local currency from 1,900/dollar recorded in late February to nearly 1,200/dollar on Tuesday at the parallel market.
The naira, which had fallen against the greenback to over N1,500/dollar at the official market, rose to about 1,230/dollar on Monday.
According to analysts, the CBN recent policies have played a pivotal role in the strengthening of the naira against the dollar.
Key highlights of the reforms encompass the unification of exchange rate windows, liberalisation of the FX market, clearance of FX backlog obligations for banks and airlines, implementation of a Price Verification System, imposition of limits on banks’ Net Open Position, removal of the daily cap of N2bn on remunerable Standing Deposit Facility, and overhaul of the Bureau De Change segment.
A number of reforms in the FX market have adversely affected racketeers and currency speculators in the FX market and banking sector.
However, the Presidency on Tuesday vowed to sustain the momentum, saying regulatory agencies would go after racketeers and “malign actors” bent on frustrating the efforts of the government.
Beyond stabilizing the exchange rate, the President also pledged to tackle inflation and bring it to a considerable rate.
Ajuri Ngelale, said President Tinubu “has been very consistent in his view that the labour pains felt by our people and the incredible sacrifices made by our people over the past 10 months would be rewarded across the board.”
Therefore, “The President’s multi-faceted approach to ridding the nation’s foreign exchange market of malign actors and sharp practices have provided a platform for the sustainable strengthening of our national currency against all global currencies and this is what we are seeing,” he said.
“But there is still much work to be done and this is not a time for celebration. It is a time for doubling down and working harder to ensure that inflation is sustainably brought down in short order and that consumer protecting regulatory agencies step up enforcement to ensure that our people are not short-changed by enterprises that fail to reflect the prevailing exchange rates on the pricing of goods and services across the board,” he added.
The Presidency also expressed confidence that the expected resumption of operations by private and government-owned crude oil refineries would boost revenue for the country and better the economy.
