By Onu Okorie
Central Bank of Nigeria CBN Governor Olayemi Cardoso has said that the favorable policy conditions of the CBN has made monthly remittances to be doubled, rising from an average of $300 million in 2023 to around $600 million in August 2024.
According to , the present naira conversion rate is not indicative of the local currency’s actual worth.
He said the apex bank believes that the current US dollar exchange rate does not accurately reflect the naira’s genuine market worth because it only reflects the amount that the most desperate purchasers are ready to pay.
He added that the action will greatly strengthen the central bank’s supervision and integration capacities, guaranteeing a more stable and open foreign exchange market.
By improving the naira’s price discovery process, the CBN chief stated that the apex bank anticipates that the implementation of the electronic marketing system will rectify these distortions.
It will be recalled that recently the CBN implemented a forex strategy, which was announced last month and confirmed over the weekend by CBN Governor
The development has a number of ramification which includes the anticipated recovery in the value of the naira across markets.
With the launch of the Electronic Foreign Exchange Matching System (EFEMS), supported by the Central Bank of Nigeria (CBN), The Nation reported that the days of foreign exchange (forex) speculation and market distortions are past.
The implementation of the forex strategy, which was announced last month and confirmed over the weekend by Cardoso, has a number of ramifications for all financial market segments that deal with forex, including the anticipated recovery in the value of the naira across markets.
Nigeria is experiencing a severe foreign exchange crisis as the availability of dollars in the country has been made worse by speculators and illegal dealers who have distorted the market.
In order to provide the CBN with better supervision capabilities to effectively manage the market, lower the rate of speculation, and stabilize the foreign exchange market, the system was introduced.
In partnership with the Financial Markets Dealers Association (FMDA), the CBN will release the EFEMS rules of engagement for authorized dealers and customers.
