FRI, MARCH 13 2020-theG&BJournal- The Naira closed Thursday’s trading weakened by 4.7% to NGN385.00/USD in the parallel market and by 1.5% to NGN374.00/USD at the I&E FX window. That sent shivers down the spines of currency watchers, prompting the Central Bank of Nigeria (CBN) to respond overnight.
‘’Market fundamentals do not support Naira devaluation at this time,’’ the CBN screamed in a statement it release long after the markets closed yesterday.
It was in response to what it called ‘’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-an impression that triggered panic buying at the FX market.
‘’In light of the 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,’’ the CBN strongly warned.
The apex bank said it has 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.’’
The CBN said 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,’’ the CBN said, adding that it is also working with 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.
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