Market not favourable to naira devaluation, says CBN

The Central Bank of Nigeria has said the devaluation of the nation’s currency is not favourable given market fundamentals.

This is coming at a time the Naira is declining in value in the foreign exchange market and the panic it has generated thus leading to the speculations of a purported devaluation.

In the meantime, the bankers bank has said it will join forces with the “Nigerian Financial Intelligence Unit and related agencies” in a bid to unravel the currency dealers triggering the panic.

The CBN made this known in a statement released by the Director of Corporate Communications, Mr. Isaac Okoroafor, in Abuja on Friday.

He said, “In the light of current circumstances and macroeconomic fundamentals, the CBN has not devalued the naira. Consequently, the CBN will invoke the full weight of applicable sanctions on any persons and authorised dealers found to be involved such disruptive and speculative market behaviour.”

Okoroafor also said the market behaviour is as a result of the coronavirus epidemic which has also affected dollar inflow into the economy.

“Although the outbreak of the coronavirus led to the global economic slowdown, fall in the price of crude oil, and less inflow of dollars into Nigeria. The associated public health concerns have also led to factory closures in China, substantial drop in imports, widespread travel restrictions around the world, and cancellation of may conferences, sporting events, business travels, and foreign exchange orders.

“The size of Nigeria’s foreign exchange reserves remains robust and comfortable, given the current realities genuine and legitimate foreign exchange demand. As such, the CBN remains able and willing to meet all genuine demand for foreign exchange,” he explained.

The naira has come under heavy pressure following the plunge in the prices of oil commodities.

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