The Governor of the Central Bank of Nigeria, Godwin Emefiele, has said that the apex bank is currently practising a ‘managed float regime’ of the Naira.
He went on to assure Nigerians that this regime will continue as the foreign reserves, which he said has hit $31 billion, has provided the CBN with adequate ‘firepower’ to keep the naira from weakening against foreign currencies, Nairametrics.com reports.
He said; “Indeed with the kind of firepower that we have, we are also going to play in that market to ensure that as the prices move on based on the managed float regime that we run, that we should be able to control the price based on willing buyer and willing seller basis,
He also pointed out that the interventions of the CBN played a crucial role in the drop in the foreign exchange rate from N525 to N370.
“Central Bank has been involved in some form of intensive interventions in the foreign exchange market and this has fortunately resulted in a downward trend in the parallel market price of foreign exchange from as higher as N525 to as low as N370. Right now it hovers between N370 to N380.”
According to the Guardian newspapers, he also said; “We have started to see a downward trend even in prices of goods and commodities and you have also must observe that inflation is also trending downward as confirmed by NBS. We are very much optimistic that by the end of the second quarter very latest third quarter this year, we should be out of the recession that we are in right now.”
“I think it’s an opportunity for me to say that we are going to continue this intervention because the reserve looks very good as I speak to you our reserve stands at above $31 billion and that provides us enough of firepower or ammunition to be able to defend the currency and we will do so with all intensity to ensure that foreign exchange is procured by everybody.”
