Importers must repatriate forex earnings when the Nigerian currency recovers against the US dollar

    In fewer than two weeks after reaching a new all-time low, the Nigerian naira recovered against the US dollar in parallel markets and moved into closing trading on August 3 at a rate of N640 to the dollar. This was the day that the previous record low was broken. A rebound of approximately 10 percent can be inferred from this rally. At the end of July, the exchange rate hit an all-time low of more than N710 to every dollar.

    According to a story published in Businessday, the strengthening of the naira was aided by a reduction in the demand for the United States dollar as well as an increase in the availability of dollars. However, previous to the currency’s recovery, the quick depreciation of the naira had caused the country’s parliamentarians to demand an explanation from Godwin Amphile, the governor of the Central Bank of Nigeria (CBN).

    During his appearance in front of lawmakers, Amphile, who had previously placed the blame for the currency’s decline on speculators, reportedly claimed that the failure of the Nigerian National Petroleum Company (NNPC) to remit funds to overseas reserves also caused Naira. contributed to the decline. The statements that were made by the governor of the CBN have been refuted, according to certain local sources, by officials from the NNPC.

    Agbogwu Ezulu, the deputy director for financial services at the Central Bank of Nigeria (CBN), is described in another story as making attacks on importers, whom he has accused of dumping foreign exchange revenue abroad. Ezulu further asserted that the Central Bank of Nigeria (CBN) had implemented an incentive referred to as the RT200 in order to stimulate repatriation of foreign exchange gains in Nigeria. On the other hand, the Deputy Director of the Central Bank of Nigeria (CBN) stated that the country’s exports were worth billions of dollars to the central bank. According to Azulu, the pressure that is being put on the Naira would certainly intensify whenever billions of dollars are removed from the economy.

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