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The Executive Director of the Osun River Basin, Mr Ayobami Oyalowo, has commended the Central Bank of Nigeria’s (CBN) foreign exchange reforms.
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Oyalowo stated that the CBN’s measures have stabilized the Foreign Exchange market and the naira.
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He noted that the CBN’s interventions, including clearing backlogs of FX and increasing liquidity, have helped restore confidence in the market.
The Executive Director of the Osun River Basin, Mr Ayobami Oyalowo, has commended the Central Bank of Nigeria’s (CBN) foreign exchange reforms.
According to Oyalowo, the CBN took specific measures to support the naira, which are yielding the desired results.
“Rather than defending the naira as claimed by some Nigerians, the Central Bank of Nigeria took specific measures to support the naira, which were yielding the desired results,” he said.
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Oyalowo explained that the CBN’s interventions, including clearing backlogs of FX and increasing liquidity, have helped restore confidence in the market.
“The current CBN has allowed for ‘price discovery,’ letting the market decide the true value of the Naira,” he said.
He noted that the CBN cleared approximately $7 billion of outstanding FX commitments, which had accumulated under the previous leadership of the CBN.
Oyalowo also stated that the CBN injected around $2 billion directly into the FX market by selling dollars to banks to meet the demand, improving liquidity, and ensuring businesses and individuals could access the foreign currency they needed at official rates.
READ ALSO: Naira Gains Against Dollar in Parallel Market Amid CBN Reforms
Also, he noted that the country borrowed $4 billion through bond issuance, which boosted the supply of dollars to the FX market.
Overall, Oyalowo said the CBN sourced and deployed over $8 billion to stabilize the FX market by meeting existing obligations and increasing market liquidity.
“This can be viewed as ‘support’ or simply ‘fulfilling obligations.’ By clearing backlogs and improving liquidity, the CBN is taking steps to create a healthier and more transparent FX market, allowing the naira to find its true value,” he said.
CPPE Urges CBN to Reduce Interest Rates After Pause
The Centre for the Promotion of Private Enterprise (CPPE) has urged the Central Bank of Nigeria (CBN) to reduce interest rates going forward.
This comes after the CBN retained the Monetary Policy Rate (MPR) at 27.50 percent, a decision that CPPE says aligns with their expectations and those of investors.
