Nigeria’s Central Bank of Nigeria (CBN) has dismissed insinuations over the devaluation of the naira, which has triggered panic in the FX Market, bringing the local currency down to N400 per dollar. Panic gripped the forex market on Thursday, throwing the Nigerian naira to N400/dollar on the streets.

“The Central Bank of Nigeria 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 said in a statement.

Here Is All You Need To Know

• The CBN alleged that the displeasure, the rumours, and speculative activities are from unscrupulous players in the foreign exchange market.
• Admitting that the outbreak of the Coronavirus has led to the global economic slowdown, fall in the price of crude oil, and less inflow of dollars into Nigeria, it stated 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.
• Nigeria’s foreign reserves currently stands at $36.2 billion.

“We therefore wish to state that we have begun a robust and coordinated investigation in collaboration with the Nigerian Financial Intelligence Unit and related agencies to uncover the unscrupulous persons and FX dealers creating this panic, and the full weight of our rules and regulations will fall on them, including but not limited to being charged for economic sabotage. 
 
“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 demands for foreign exchange for legitimate transactions. 
 
“In light of current circumstances and macroeconomic fundamentals, the CBN has not devalued the naira.

“Consequently, the CBN will invoke the full weight of applicable sanctions on any persons and authorised dealers found to be involved in such disruptive and speculative market behaviour,” the statement reads in parts.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com