The Central Bank of Nigeria has revealed that it is not worried about the naira’s valuation but boosting the supply of dollars in the currency market.
This was disclosed in a report by Reuters on Tuesday morning during a virtual investor conference.
Director of Monetary Policy, Hassan Mahmud said, “We are not really bothered much about valuation. What we are worried about is the supply side and the confidence in the system.”
Mahmud added that the level of the currency is expected to adjust based on demand but that market failure had made the bank adopt a managed float regime.
The CBN has been trying to curtail a dollar supply problem with policies, such as the ordering of banks to publish on their websites, the names and Bank Verification Numbers (BVN) of customers who participate in fraudulent and unscrupulous tactics to obtain foreign exchange from banks.
The apex bank also warned that customers who do not comply with the new foreign exchange policy may face criminal prosecution.
The development conjures a sordid exchange scenario as the free fall of naira in the parallel window has been unabating. This morning, September 8, BDC is exchanging 1 USD for N531.