Presidency Backs CBN Currency Non-Devaluation Policy

The Central Bank of Nigeria, CBN, and Debt Management Office, DMO, are said to have federal government’s backing on their refusal to devalue the naira. THISDAY reported a presidency source told it that the support necessitated the response by CBN and DMO to JP Morgan and Chase’s removal of Nigeria from its Government Bonds for Emerging Markets.

The source was further quoted to have said that the naira risked greater depreciation, which would result in import-induced inflation, job exporti, and foreign reserves depletion. A major concern for the federal government, the source reportedly said, was fuel subsidy, which takes 50 percent of the subsidy bill federal government pays oil marketers. It was also said that the federal government would unfold economic agenda soon and block leakages causing the country revenue loss.

The CBN, in an advertorial on 10 September, said it met “all genuine and effective demand” from foreign investors. It also said it ensured forex transactions were posted online in the Reuters Trading Platform so that stakeholders can verify all transactions in the market. The statement noted that a functional two-way forex market already exists in the country.

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