Sunday, July 21, 2024

FG Considers Dollar Supply To Stabilize Naira As Naira Sinks Further

The federal government has disclosed that it may inject some foreign exchange into the economy to shore up the value of the naira while market forces stabilize.

The Special Adviser to the President on Special Duties, Communication and Strategy, Dele Alake stated this while speaking with reporters in Paris.

Alake is part of President Bola Ahmed Tinubu’s team attending the new global financial pact summit in Paris, France to facilitate foreign direct investment into Nigeria.

Alake’s comment is coming on the heels of the recent exchange rate unification which saw the Naira experiencing a significant surge against the US dollar at black market.

On Wednesday, June 21, 2023, the naira traded at an average exchange rate of N758/$1, marking a remarkable increase of 2.82% compared to the previous day’s trading session where the dollar was valued at N780/$1.

Thursday, saw the naira skyrocket to 820/$

Read Also: Naira Plunges To New Low On Investors And Exporters Window

Although the presidential spokesman was not specific about the nature of the dollar injection, he said: “Don’t forget that Mr. President has taken some very bold steps in the area of economy, in the area of social engineering in the last few weeks, and particularly with reference to the unification of the multiple exchange rates, which has caused very positive multiplier effect.

He said the president’s policies in the last three weeks had encouraged the foreign nations and investors to become more interested in the affairs of Nigeria, shoring up the country’s economy.

The special adviser also said heads of state and international financial institutions had indicated interest to meet with the president to consider areas of cooperation with the new positive development in Nigeria.

Since its launch a week ago, the naira-to-dollar exchange rate has fluctuated, plunging 29% to N664/$1 on the first day.

Before ending the week marginally stronger at N664/$1, it dropped further to N702/$1.

The I&E Window shut down on Monday at N770.3/$1 then reopened on Tuesday, June 20, at N756.6, continuing the volatility that had been dealt with ever since the unification process began.

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