Nigeria's Central Bank Denies Devaluing Naira, Threatens To Sanction Fraudulent Speculators

Nigeria's Central Bank Denies Devaluing Naira, Threatens To Sanction Fraudulent Speculators

Naira

The Central Bank of Nigeria has denied rumours that it had devalued the naira, the country's currency. 

According to the apex bank, fraudulent speculators were behind the artificial scarcity of the United States dollars in parts of Nigeria, thereby jacking up the exchange rate and weakening the naira. 

In some parts of the country earlier this week, the dollar sold for N375, a situation that caused a bit of rancour in the financial market across Nigeria. 

However, reacting to the development, the CBN called on members of the public not to panic because the value of the naira to the US dollars had not depreciated. 

In a statement by Director, Corporate Communications, Isaac Okorafor, the apex bank said, "The Central Bank of Nigeria wishes to note with displeasure the 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 and triggering panic in the FX market.  

"These rumours are false, unwarranted and calculated to serve their dubious and selfish ends. 

"We therefore wish to state that we have begun a robust and coordinated investigation in collaboration with the Nigerian Financial Intelligence Unit and related agencies to uncover the unscrupulous persons and FX dealers creating this panic, and the full weight of our rules and regulations will fall on them, including but not limited to being charged for economic sabotage. 
 
"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 demands for foreign exchange for legitimate transactions. 
 
"In light of 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 authorised dealers found to be involved in such disruptive and speculative market behaviour."  
   
 

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SaharaReporters, New York



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Source: Nigeria's Central Bank Denies Devaluing Naira, Threatens To Sanction Fraudulent Speculators