It was recently announced by the governor of the Central Bank of Nigeria, Olayemi Cardoso as revealed that the apex bank, in close collaboration with the ministry of finance alongside NNPC, will work handily together to make sure that all forex inflows return to the Central Bank of Nigeria (CBN).
Mr Cardoso stated that the CBN will work on price discovery for the nation's local currency as it believes that the naira is currently "undervalued" and, coupled with coordinated measures on the fiscal side, the CBN will expedite genuine price discovery in the near term.
He also said that the CBN is working on clearing FX backlogs and will ensure that those who abuse the process are dealt with according to the provisions of the law.
The CBN head made this known yesterday while delivering his speech at the Nigerian Economic Summit Group's (NESG) 2024 Macroeconomic Outlook Report launch.
The CBN Governor's speech reads,
- The naira is currently undervalued, and coupled with coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term. This coordinated approach will contribute to a more balanced and stable exchange rate.
- With the Ministry of Finance and the NNPC to ensure that all FX inflows are returned to the Central Bank. This coordinated effort will significantly enhance the Bank's FX flows and contribute to the accretion of reserves.
- The CBN governor noted that the expected stability in the foreign exchange market for 2024 can be attributed to the reduction in petroleum product imports and the apex bank's recent implementation of a market-determined exchange rate policy.
Read more: https://www.investingport.com/cbn-partners-with-minstry-of-finance-and-nnpc-on-forex-repatriation/