The Central Bank of Nigeria CBN has denied the reports that they have concluded plans to Devalued the naira, calling the reports false and should be disregarded.
CBN in a Press statement released on Thursday 12th March 2020, by the Director, Corporate Communication, Isaac Okorafor, said ‘the CBN wishes to note with displeasure, the rumours
and speculative activities of unscrupulous players in the foreign exchange market, borne out of the impression that the CBN is on the verge of devaluing the Naira, and triggering panic in the Foreign exchange Market,: he stated.
Stating further on the rumoured naira devaluation, CBN added that the rumours are false, unwarranted and calculated to serve their dubious
and selfish ends. We therefore wish to state as follows:
1. We have begun a robust and coordinated investigation in collaboration
with the Nigerian Financial Intelligence Unit (NFIU) and related agencies
to uncover the unscrupulous persons and FX dealers who are creating this
panic, and the full weight of our rules and regulations will be meted out to
them, including, but not limited to, being charged for economic sabotage;
2. For nearly four years, the CBN has successfully maintained relative
stability in all segments of the foreign exchange market, which has
enabled investors, households and other economic agents to plan and to
conduct their genuine foreign exchange transactions with relative ease;
3. The introduction of several foreign exchange management measures
side-by-side with complementary interventions in food production and
manufacturing has drastically reduced food importation, which hitherto
constituted a large chunk of the pressure on the foreign exchange
market;
4. Although the outbreak of the Coronavirus led to 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 many conferences,
sporting events, business travels, and FX orders;
5. The size of Nigeria’s foreign exchange reserves remains robust and
comfortable, given the current realities of Nigeria’s genuine and
legitimate FX demand. As such, the CBN remains able and willing to meet
all genuine demand for foreign exchange for legitimate transactions; and
6. For the avoidance of doubt, the CBN is also working with the fiscal
authorities to properly and accurately dimension the immediate and
expected impacts of the Coronavirus in order to respond comprehensively
and at the same time, ensure a sound and stable financial system
conducive for job creation and inclusive growth.
In 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 authorized dealers found to be involved in such disruptive and speculative market behaviour.