Stella Dimoko Korkus.com: CBN Explains Naira Rise,Dollar Fall

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Friday, March 03, 2017

CBN Explains Naira Rise,Dollar Fall

The Central Bank of Nigeria 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 Okoroafor, on Thursday in Sokoto refuted the claim that the allegations by Mr Babatunde Gbadamosi on the illegal sales of foreign currencies at ridiculous rates were responsible for the change in forex policy.

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

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

The CBN, however, 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 also directed banks to file returns on the sale of foreign currencies in dollars to avoid ambiguities and misinterpretations in future.

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

He said, “I want to state categorically that there is no relationship whatsoever between the allegations by the so-called person [Gbadamosi] 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 the 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.”

Okoroafor said that since the new forex policy, the CBN had intervened with about $591m in the market which had led to Naira gaining strength.

He said, “Let me also state as proof that when we placed $500 in the market only $370 was taken.

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

“Anybody who has run afoul 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.”

NAN via dailypost


23 comments:

  1. Osinbanjo should should become the president, Buhari pls remain in london.

    ReplyDelete
    Replies
    1. God bless bekky for this comment
      Baba bad luck don't bother coming back.. Your absence was indeed a blessing in disguise for Nigerians. How can one person carry all this bad luck with him? Same thing that happened during his first administration..

      Baba Allah akaramaka Lafia, amaan bamuso nka kadawo naijeria

      Delete
  2. Queen of the coast😗👸3 March 2017 at 11:43

    Ok o... keep falling...Sandra was here.

    ReplyDelete
    Replies
    1. Everyone is here praising osinbajo .....until naira can comfortably stay at 160#-1$ I can't really see any reason to praise him.....because even with all these, Nigerian students abroad still can't use their ATM cards

      Delete
  3. The naira fell to N458 yesterday. Wayo people.

    Behaving like APC with noise

    ReplyDelete
  4. so we shud jump up for Joy? when PDP was there we cussed and complained,but naira to 1 dollar was 180

    ReplyDelete
  5. Let it fall to 150 pls

    ReplyDelete
  6. So, what is the exchange rate now at the parallel market?

    ReplyDelete
  7. This Mr Gbadamosi's story is beginning to sound unbelievably true. if there's so much dust been raised by one man's research so much the government felt the need to immediately react with a policy change and next with a press briefing, it's safe to assume here and now that there's no smoke without fire.

    ReplyDelete
    Replies
    1. God bless you

      Delete
    2. Can I like your comment a million times? God bless you

      Delete
    3. When they give u this shit, just check abokifx, dollar is 465,this evening.

      Delete
  8. Increase in the price of crude oil also helped
    It went from 30 dollar per barrel roll 53 dollar per barrel.

    That's the reason the forex reserve increased..

    ReplyDelete
  9. Stop lying mister,CBN was selling dollars to some special people even to the first lady,at 5Naira! Stop telling lied! Mister gbadamosi knew what he was saying

    ReplyDelete
  10. The more you look. The less you see.
    Bring it back to N187 where it was before APC Campaign promises.

    Shikena!

    ReplyDelete
  11. What are these people actually celebrating?. You met dollar at #170/1$ and now its #485/$1 and your celebrating?. Please take it back to where you met it if you can't improve on it.

    ReplyDelete
  12. I'm watching with one of my corner eye

    ReplyDelete
  13. Why are they rejoicing ,dollar is still high until it get to at least 130 per dollar ,then we rejoice

    ReplyDelete
  14. Before this man blow whistle on their favoritism and they cried out. There must be truth in his statement. EFFCC will be blind to this case like that. Until dollar goes back to #100 naira or even #1 naira. CBN should go and keep quiet.


    Asoge

    ReplyDelete

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