We are not worried about the evaluation of Naira - emerging market Bitcoin News
We are not worried about the evaluation of Naira - emerging market Bitcoin News
The monetary policy director of the Central Bank of Nigeria (CBN), Hassan Mahmud, has indicated that the institution is not worried about the evaluation of the Naira, but is instead interested in "increasing the duties on the foreign exchange market".
depreciation in Naira
according to A test report , Mahmud's comments were made only for one day after the local currency on the parallel market had reached a new low of 532 Naira for a dollar. This new parallel market exchange rate differs significantly from the current CBN CHP from about 411 Naira to the dollar.
Despite the blatant differences between the two interest rates, Mahmud, who spoke at a virtual investor conference, consisted that the remedy of this gap was not the priority of the central bank. Mahmud explained:
We don't really take care of the evaluation. What worries us is the offer side and the confidence in the system.
currency nappy
Since the second quarter of 2020, Nigeria has struggled with a lack of foreign exchange, which in turn increases the pressure on the Naira. In order to reduce the pressure on the Naira, the CBN has devalued the currency three times since March 2020. In addition, the central bank has imposed a number of restrictions that aim to control foreign exchange traffic.
Despite the devaluations and the imposed restrictions, the Naira has lost on the ground due to what Mahmud calls Mahmud as "market failure", such as the US dollar. According to the director of the CBN monetary policy, it was these market failure that prompted the central bank to "introduce an managed floating regime".
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