How CBN Plans On Stopping The Naira From Falling – Board Member

Reports have emerged on the policies the Central Bank of Nigeria (CBN) plans on introducing to stem the continuous slide of the naira against the dollar.

A CBN board member who spoke to The Nation stated that top of these plans is to flood the market with dollars.

The source who spoke on the condition of anonymity told the publication that the apex bank plans on injecting foreign exchange into the market to stabilize the exchange rate.

The source said, “At this point, the bank is going to inject foreign exchange into the market to stabilize the exchange rate.

“It will be a desirable thing, and that’s the essence of having reserves to stabilize the naira at any point in time.”

The board member noted that previous interventions by the CBN included putting money into the foreign exchange market when required.

He added that the decision is “a management routine function”, adding: “It’s a desirable thing to help the naira at this point.”

The CBN board member argued that to stop the naira from further haemorrhaging, the advisable thing is “as much as possible to flood the market with foreign exchange”.

“I am sure this government did not want any demand management policy, but such policies are also called for at this point.

“If they are operating a free market, the demand is overwhelming and you need to manage that demand, restrict that demand with certain policies.

“Foreign exchange availability is very limited, so the problem requires to be tackled from both the demand and supply sides.”