Why We Won’t Devalue Naira Again - CBN Governor
The Central Bank of Nigeria (CBN) governor, Godwin Emefiele,
has stated that the CBN won’t devalue the country’s currency again.
The CBN governor stated this today, October 30, while speaking to
state house correspondents at the presidential villa, Aso Rock, Abuja,
the News Agency of Nigeria reports.
It will be recalled that in his recent visit to france, President Muhammadu Buhari had expressed his disinterest in the devaluation of the naira while speaking to television station, France 24.
Godwin Emefiele, CBN Governor
Emefiele said: “There has been a lot of talk on whether or not
we want to depreciate our currency again. The truth is that we had
adjusted the currency by depreciating it from N155 to N197 in February
this year.There is no intention to depreciate or adjust the currency any
longer.
“The President has been very clear on this. The Vice President
has been very clear on this and let me further reiterate our position at
the CBN that we are not considering any further depreciation of the
currency.”
Emefiele said the focus of the apex bank was on how to deepen the foreign exchange market to make it viable.
“What we are trying to concentrate on right now is how to
improve and deepen the foreign exchange market by improving supply of
foreign exchange into the market.
“And to do so, we are trying to encourage people to export and
earn your export proceeds and use your export proceeds to import
whatever you need to import.
“We are also concentrating on how to reduce the import of items that we can produce in the country today.”
Emefile revealed that the CBN would soon launch a campaign called PAVE, meaning: “Produce locally, add value and export your product and earn your foreign exchange for your imports.”
He opined that the campaign was the only way producers could
support the efforts of the apex bank in intervening and providing
foreign exchange in the market to meet the import needs of the people.
“It is very clear: what we need to do is reduce our propensity to
import, but we will not depreciate our currency.For now we will not,” he said.
On the list of items in the import prohibition list, the CBN governor said he had no power to ban the importation of any item.
READ ALSO: How CBN Defends Naira
“What we have done is to exclude certain items that are
imported into the country from obtaining foreign exchange from the
Nigerian foreign exchange market.
“Yes, it is also true we held a stakeholders’ meeting with the
organized private sector and prominent and leading private sector
stakeholder were at that meeting.
“The purpose was to engage the private sector to make the
private sector understand that government realizes that they are engine
of growth. We also used the opportunity to explain to them the basis and
purpose of those policies that we have introduced. At the end of that
meeting, they were very happy.
“They saw our position and indeed at the end of that meeting,
some of them provided us with the names of some items that should be
included in the list that should be excluded from foreign exchange.
“And I must confess that at this stage, given the determination
of some of the organized sectors to say that yes, they produce these
items and that we should exclude those items from foreign exchange, we
are reviewing that list.
“We may in due course include more items, products that can be
produced in Nigeria, in the list of items that will be excluded from
foreign exchange in the Nigerian foreign exchange market,” he said.
READ ALSO: Naira Regains Strength Amid CBN Intervention
Emefiele, had earlier given a hint that he will consider easing restrictions on currency trading if demand for foreign exchange drops further.It will be recalled that in his recent visit to france, President Muhammadu Buhari had expressed his disinterest in the devaluation of the naira while speaking to television station, France 24.
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