The Federal Government’s recent interventions have strengthened the naira and stabilised the foreign exchange, FX, market, bringing renewed confidence to investors and businesses.
Ayobami Oyalowo, Executive Director of the Osun River Basin and a finance expert, stated on Monday that the Central Bank of Nigeria, CBN, was not merely defending the naira but implementing strategic measures to support a functional and transparent market.
He highlighted key differences between defending and supporting a currency, explaining that while the previous CBN leadership artificially pegged the naira’s value, the current administration had adopted market-driven reforms.
One of the significant steps taken, he said, was the clearance of approximately $7 billion in outstanding FX commitments, which had accumulated under the past administration.
This move, he noted, restored confidence in the market by ensuring businesses and individuals who had paid for foreign currency received their due allocations.
Additionally, Oyalowo stated that the CBN injected about $2 billion into the FX market by selling dollars to banks, increasing liquidity and ensuring easier access to foreign exchange at official rates.
To further stabilise the naira, he noted that the government secured $4 billion through bond issuance, boosting the overall supply of foreign currency in the market.
By fulfilling commitments and improving liquidity, he said, the CBN had deployed over $8 billion to stabilise the FX market. These actions, he added, were aimed at restoring trust, creating a more predictable exchange rate system, and allowing the naira to find its true value.
NAN
