The Central Bank of Nigeria has openly made its position known regarding flying rumors of the possible devaluation of the naira.
Since the virus has been wreaking havoc on global commerce, Nigeria has also felt the impact as it has officially reported two cases within the state.
The virus which has affected global oil trade; crashing the prices puts the Nigerian state in a dangerous position. This belief is held by many and a devaluation of the naira appears to be a possibility.
The Apex bank through a document dated 12-03-2020 and signed by Isaac Okorafor, Director, Corporate Communications said the “Market Fundamentals Do Not Support Naira Devaluation at This Time”
According to the Central bank of Nigeria (CBN), it “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.”
The Apex bank went further saying it has begun a coordinated investigation in collaboration with the Nigerian Financial Intelligence Unit (NFIU) and other agencies to uncover the unscrupulous persons and FX dealers who are creating panic and will punish them according to the full extent of the law ,even with the charge of economic sabotage.
The CBN said it has for four years successfully maintained relative stability in all segments of the foreign exchange market, which has enabled people to plan and to conduct their genuine FX transactions with ease.
As much as the virus has affected global trade most especially the oil market which Nigeria owes majority of its FX inflow to, the CBN maintain that 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 demand for foreign exchange for legitimate transactions”
Devaluation according to the Nigerian Bankers Bank believes owing to the current circumstances and macroeconomic fundamentals, it will not devalue the naira and for anyone caught disrupting the sanity of the FX market, will be visited with the full weight of the law.
On crypto exchanges, Naira is trading above 400NGN as at Press time.