The Governor of the Central Bank of Nigeria, Godwin Emefiele has assured Nigerians that the present administration will continue to defend the naira, as the foreign reserves, which he said has hit $31 billion, has provided the CBN with adequate ‘firepower’.
He also said the CBN is currently practicing a ‘managed float regime’ of the naira, this regime, he said will enable the apex bank to control the price based on willing buyer and willing seller basis
“Central Bank has been involved in some form of intensive interventions in the foreign exchange market and this has fortunately resulted in a downward trend in the parallel market price of foreign exchange from as higher as N525 to as low as N370. Right now it hovers between N370 to N380.” Emefiele pointed out.
Explaining further, Emefiele said: “We have started to see a downward trend even in prices of goods and commodities and you have also must observe that inflation is also trending downward as confirmed by NBS. We are very much optimistic that by the end of the second quarter very latest third quarter this year, we should be out of the recession that we are in right now.”
“I think it’s an opportunity for me to say that we are going to continue this intervention because the reserve looks very good as I speak to you our reserve stands at above $31 billion and that provides us enough of firepower or ammunition to be able to defend the currency and we will do so with all intensity to ensure that foreign exchange is procured by everybody.” he said.