Valuation of the VIN: the ANLCA urges the NCS to abandon the non-standard value

Nigeria’s apex bank, the Central Bank of Nigeria (CBN), is committed to addressing and resolving the issues of continued decline in the value of the naira and currencies.
The CBN has also advised Nigerians to resist the urge to succumb to the speculative activities of some foreign exchange market participants in the face of growing demand for foreign currency for goods and services by Nigerians.
CBN’s Director of Corporate Communications, Mr. Osita Nwanisobi, in a statement made available to reporters on Friday, said the CBN remained committed to addressing the currency issues facing the country and had been working to manage the demand and supply challenges.
According to him, the CBN would continue to make deliberate efforts in the foreign exchange sector to avoid a further decline in the value of the naira fueled by speculative tendencies.
While admitting that there was huge pressure from the demand for currency to meet the needs of manufacturers as well as for the payment of tuition fees, medical expenses and other invisibles, Nwanisobi said the CBN was concerned about the value international naira.
He said the monetary authority was developing a strategy to help Nigeria earn more stable and sustainable foreign exchange inflows in the face of declining inflows from the oil sector.
“Recent initiatives undertaken by CBN such as the RT200 FX program and the Naira4Dollar rebate program have helped increase foreign exchange inflows into the country.
“Records showed that currency inflows through the RT200 FX program during the first and second quarters of 2022 increased significantly to around $600 million in June 2022,” he said.
The CBN spokesperson revealed that the Naira4Dollar incentive also boosted the volume of Diaspora remittances in the first half of the year.
He said that interventions such as the 100 percent policy on production and productivity, the anchor borrower program and the non-oil export stimulus facility, among others, were also aimed at diversifying the economy, increasing the influx of foreign currency, to stimulate production and to reduce currencies. demand pressure.
Reiterating an earlier position by CBN Governor, Mr. Godwin Emefiele, he urged Nigerians to play their part by adjusting their consumption patterns, looking inward and finding innovative solutions to the country’s challenges.
In his view, monetary policy alone could not bear the full burden of the expected adjustments needed to manage Nigeria’s foreign exchange challenges.

By: Corlins Walter