374 Views

CBN: Naira To Remain At N360 Until Increase In Production And Export

Speaking in Abuja, Wednesday night, at the monthly meeting of the Nigerian Institute of Public Relations, NIPR, Capital City Chapter, Abuja, Acting Director in charge of Corporate Communications at the CBN, Mr. Isaac Okoroafor, also stated that if it had given in to pressures put on it to float the naira, the country’s currency would have depreciated to N3,000 to the dollar.

The Central Bank of Nigeria, CBN, has disclosed that the naira would continue to exchange at N360 to a dollar until production and export of goods increases significantly in the country.

Okoroafor noted that the dollar cannot be said to be over-valued against the naira, because currency valuation is not determined in isolation, but is also hinged on the strength and the ability of the country to produce and export. Why multiple exchange rate He explained that the CBN’s decision to maintain multiple exchange rates and allowed the naira to trade around N360 to a dollar was based on the fact that it is trying to help manage the economy until real production begins. He said, “You need to stimulate people through this kind of arrangement.

Once we feel things are stable, we can allow a unified exchange rate.
We understand what we are doing because the development of Nigeria is at the root of everything.

We try to ensure that we do not increase the level of misery and we try to encourage people to try and produce with the little they have.” The CBN spokesman added that as soon as the Nigerian economy improves, especially with positive signals seen in the 2018 budget, the value of the naira would increase and the currency would drop below N360 to a dollar. “We believe that with time, once the level of infrastructure improves and there is better security, prices would begin to come down

and as prices come down, production would start and Nigerians would begin to export. This is because your ability to export also determines the strength of your currency. “Nigerians should go and produce, add value to the goods and export. And once we start that, we see the naira shaping up. The naira would begin to strengthen. As long as we remain a nation of consumers, taking from other countries, and even killing those who are producing it here, our naira would continue to be weak.” Floating would dragged naira to N3,000 to $1 In addition, Okoroafor explained that it was pressured both locally and internationally, to float the naira, but it resisted it because it felt it was a wrong option and would be dangerous to the economy.

He said, “We believed that floating the naira could have destroyed this economy, because from our own calculations, if we had floated the naira when it was N525, the next thing would have been N700, N1,200, maybe N3,000 and it goes; it would begin to go haywire. “We resisted that because we knew what we were doing. We resisted this because we knew we were right and they were wrong and we were proved right.”

Okoroafor added that, “Egypt floated its currency and inflation rate moved from 14 to 31. Of course, the inflation rate in Venezuela that floated its currency also was 95 per cent. In Zimbabwe, I don’t know how many thousand was the last one. “You could see that we weaved the story around saying ‘look, telling us to float the naira is like taking off from Egypt to Venezuela to take a connecting flight that would land you in Zimbabwe.”

We warned of impending recession On the CBN monetary policy stance in the face of dwindling economic fortunes, Okoroafor averred that the CBN, through one of its Monetary Policy Committee communiqué, specifically in July 2015, had warned that the Nigerian economy would go into recession if nothing urgent is done and if demand is not stimulated He said, “The role of the central bank is to maintain stability; that is all. Now, that is the nature of the central bank, but the people that could respond to such things are the fiscal side. We were ready, but monetary policies do not have the tools to increase production, reduce cost and supply more food.”

ALSO READ  CBN Injects Fresh $210m Into Forex Market

The CBN spokesman noted that the measures helped Nigeria set a record as the only country in the world that was able to strengthen its currency from a very weak position of 525 to 360 to the dollar. He said, “When the depreciation of the naira became worse, that was when it fell to N525 to a dollar, we sent out people to study the informal market, that is the parallel market.

Banks attempted to scuttle interventions Okoroafor also disclosed that the CBN deployed a number of strategies, including constant communication, engagement, with banks and other stakeholders and threat of sanctions, to salvage the naira, despite attempts by commercial banks in the country to derail its programmes.

We discovered that the parallel market was actually very small and that we had enough dollars to satisfy that market. “We isolated items; the invisibles were many — Business Travel Allowance, BTA, Personal Travel Allowance, PTA, school fees and medical fees. Those were the key items that were pushing up the weight in the parallel market.” Following its findings, the CBN spokesman said it called the banks to find out their dollar needs in terms of meeting their individual demands for invisibles, and after getting their feedbacks, it decided to meet the demands of each of the banks, crafted a press release informing Nigerians to approach their banks to get dollars, while it also directed the banks to open up sales points, including at airports.

He added that, “The banks plunged into it, but after a week or two, they became disinterested. We asked why; we couldn’t understand why. There is a theory that economic agents, when the margin is not much, do not put enough interest. We felt that the economy was at stake; the welfare of Nigerians was at stake and we have power to regulate this industry. “We said to the banks, ‘you have a duty to make money, yes; you have a responsibility to attend to your customers; and so we are giving you this money, you must take it.’

We started crediting their accounts. ‘If you do not sell it, if you bring it back to us, we will buy at a rate that is lower than what we gave it to you.’ That is when you saw them advertising that people should come and buy BTA.” NIPR commends CBN Also speaking, Chairman of the NIPR, Abuja Chapter, Dr. Tayo Haastrup, commended the CBN and its Corporate Communications department for the role their played in salvaging the naira and during the period the economy was in recession. He said, “Nigerian economy is very important to us, we just came from recession and the CBN is a very strategic agency in this country.

We decided at executive level to get somebody from the CBN, who is our member.
We have the belief that as a public relations person heading the corporate communications department of CBN, he will be versatile enough to talk on the issue in question.

“The nation faced some serious challenges but the strategy adopted by CBN public relations was able to douse tension and professionally handled the crisis.” He expressed optimism that the lecture would boost the professional capacity of public relations practitioners in handling challenges.

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest Posts

Nigerian Govt Evacuates 230 Stranded Nigerians In Russia
Politics
5 views
Politics
5 views

Nigerian Govt Evacuates 230 Stranded Nigerians In Russia

PH - July 20, 2018

The Ministry of Foreign Affairs has said that Nigerians stranded in Moscow, Russia at the end of the 2018 World Cup Tournament would be evacuated today. The…

Okonjo-Iweala Appointed Into Twitter Board
Politics
16 views
Politics
16 views

Okonjo-Iweala Appointed Into Twitter Board

PH - July 20, 2018

A former Nigerian Minister of Finance, Ngozi Okonjo-Iweala, has been appointed into the board of social media giant, Twitter Inc. Mrs Okonjo-Iweala, who served in the administration…

Drama As Baby Boy Is Found Under Trailer In Kaduna State
Shocking
10 views
Shocking
10 views

Drama As Baby Boy Is Found Under Trailer In Kaduna State

PH - July 20, 2018

A three-month-old baby boy, whose mother, Aisha Yau attempted to kill, has been rescued by the Kaduna State government. Kaduna State Commissioner for Women Affairs and Social…

Benue Gov. Ortom Cries Out Over Alleged Plans To Attack Him
Politics
13 views
Politics
13 views

Benue Gov. Ortom Cries Out Over Alleged Plans To Attack Him

PH - July 20, 2018

Benue State Governor, Samuel Ortom has cried out over alleged plan by some persons to attack him. The governor said there were underground plans by his political…

Dino Melaye Confirms Assasination Attempt, Indicts Police, Military
Politics
16 views
Politics
16 views

Dino Melaye Confirms Assasination Attempt, Indicts Police, Military

PH - July 20, 2018

Senator representing Kogi West District in the National Assembly, Dino Melaye, has spoken on the alleged assassination attempt on his life on Thursday. The Senator had arrived…

Ngozi Okonjo-Iweala Appointed Into Twitter Board
Best of Nigeria
12 views
Best of Nigeria
12 views

Ngozi Okonjo-Iweala Appointed Into Twitter Board

PH - July 20, 2018

Social media giant Twitter Inc has announced the appointments of Nigeria’s former Minister of finance Ngozi Okonjo-Iweala to its board. Okonjo-Iweala was appointed alongside Robert Zoellick as…

American Universities Award $5.3m Scholarships To 110 Nigerian Students
Best of Nigeria
14 views
Best of Nigeria
14 views

American Universities Award $5.3m Scholarships To 110 Nigerian Students

PH - July 20, 2018

The U.S. Embassy in Abuja says over 110 Nigerian students have been awarded scholarships worth $5.3m (about N2bn) by more than 15 leading American universities, starting in…

Alibaba On Throwing Away A Good Man, Says ‘All You Need Is Understanding’
Entertainment
47 views
Entertainment
47 views

Alibaba On Throwing Away A Good Man, Says ‘All You Need Is Understanding’

MT - July 19, 2018

Veteran Nigerian comedian Alibaba, who is known for his regular nuggets on relationship issues, has just dropped another one for his fans and followers. In his latest…

8 Health Benefits of Dark Chocolate Every Woman Should Know
Food and Health
45 views
Food and Health
45 views

8 Health Benefits of Dark Chocolate Every Woman Should Know

MT - July 19, 2018

Everyone loves to eat chocolate but many think of unhealthy amounts of sugar, fat and poor diet at the mere thought of chocolate and this is not…

This Is The Cute Way Laura Ikeji Is Celebrating Her Son’s First Birthday
Best of Nigeria
41 views
Best of Nigeria
41 views

This Is The Cute Way Laura Ikeji Is Celebrating Her Son’s First Birthday

MT - July 19, 2018

Instagram brand influencer, Laura Ikeji has many reasons to be thankful as her son, Ryan celebrates his first birthday today. Laura took to Instagram to pen this…

Revealed: How FG Agency Spent N5.7bn On DSTV Subscription, Fuel Allowance – NSITF
Politics
39 views
Politics
39 views

Revealed: How FG Agency Spent N5.7bn On DSTV Subscription, Fuel Allowance – NSITF

MT - July 19, 2018

A report by the administrative panel of enquiry set up by the minister of labour and employment has shown that staff of the Nigeria Social Insurance Trust…

Governor Ortom Reveals He’s Still In APC Despite Secret Talks With PDP Leaders
Politics
44 views
Politics
44 views

Governor Ortom Reveals He’s Still In APC Despite Secret Talks With PDP Leaders

MT - July 19, 2018

Samuel Ortom, governor of Benue state, says efforts are in place to resolve the issues he has with the All Progressives Congress (APC). Ortom said this less…

Why EFCC, ICPC, Others Should Go After Governor Wike – APC
Politics
41 views
Politics
41 views

Why EFCC, ICPC, Others Should Go After Governor Wike – APC

PH - July 19, 2018

The All Progressives Congress, APC, in Rivers State has accused the Governor of the State, Nyesom Wike, of allegedly acquiring personal belongings with the State’s funds. The…

Comprehensive List of USSD Codes of All the Commercial Banks in Nigeria (Full List)
Best of Nigeria
62 views
Best of Nigeria
62 views

Comprehensive List of USSD Codes of All the Commercial Banks in Nigeria (Full List)

MT - July 19, 2018

#MobileBanking #FinancialLiteracy #FinancialInclusion #Banking In case you didn’t know Here is the comprehensive list of the USSD codes of all the licensed commercial banks operating in Nigeria:…

How FG Curtailed IPOB And Niger Delta Militants – VP Osinbajo
Politics
46 views
Politics
46 views

How FG Curtailed IPOB And Niger Delta Militants – VP Osinbajo

PH - July 19, 2018

Vice President, Yemi Osinbajo has said that the intervention by traditional rulers helped curtail the bombing of oil installations by the Niger Delta militants and the secessionist…

Chimamanda Adichie, Nnedi Okorafor, Ngũgĩ wa Thiong’o Nominated For Alternative Nobel Prize for Literature Award
Best of Nigeria
73 views
Best of Nigeria
73 views

Chimamanda Adichie, Nnedi Okorafor, Ngũgĩ wa Thiong’o Nominated For Alternative Nobel Prize for Literature Award

PH - July 19, 2018

Ngũgĩ wa Thiong’o, Chimamanda Adichie and Nnedi Okorafor are the 3 African writers nominated for an alternative Nobel Prize for Literature alternative prize award. Following the shocking…

Meet Osun APC Governorship Aspirants Participating in Tomorrow’s Primary
Politics
61 views
Politics
61 views

Meet Osun APC Governorship Aspirants Participating in Tomorrow’s Primary

MT - July 19, 2018

Less than twenty hours to the primary election of the All Progressives Congress in Osun state, September 22 governorship aspirants are making last minutes preparations to clinch…

10-Year-Old Author Launches Two Books titled Concealed and Chidubem
Featured
55 views
Featured
55 views

10-Year-Old Author Launches Two Books titled Concealed and Chidubem

PH - July 19, 2018

Family, friends and well-wishers gathered Sunday at the Terra Kulture, Victoria Island, Lagos to launch two books written by 10-year old Munachi Mbonu. The books, Concealed and…

Loading...