Nigeria Govt Plans To Raise $10bn To Boost Foreign Exchange As Naira Trades Above N1,850

In a bid to stabilize its fluctuating currency, Nigeria’s Federal Government unveils plans to raise $10 billion to bolster liquidity in the foreign exchange market.

President Bola Tinubu, represented by Vice President Kashim Shettima, outlined this strategy at the inaugural Public Wealth Management Conference in Abuja.

“The Federal Government set a goal to raise at least $10 billion to increase foreign exchange liquidity, a key ingredient to stabilize the naira and grow the economy,” stated Stanley Nkwocha, Senior Special Assistant to the President on Media & Communications.

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Emphasizing transparency and accountability, the President highlighted the importance of effective asset management and investment to unlock revenue potential.

He outlined a vision to double the GDP growth rate and significantly expand the GDP base over the next eight years, aiming to channel improved returns towards critical sectors such as education, healthcare, and infrastructure development.

However, despite efforts to shore up the currency, exchange rate volatility persists. The naira plummeted to an all-time low of 1,850 per dollar at the parallel market on Tuesday. Currency traders in Abuja noted continued volatility, with rates predicted to plummet further if corrective measures aren’t implemented.

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“The police filled everywhere in the market today but that still didn’t change everything. Today’s rate finished at 1,850/$ and I will buy it at that rate right now because there is demand,” remarked Ibrahim Taura, a bureau de change operator.

On the official front, the naira appreciated by 1.48% to 1,551/$, following increased forex turnover. Nonetheless, the country grapples with a persistent forex shortage, stemming from reduced oil production and foreign inflows.

Since the Central Bank of Nigeria floated the naira in June 2023, unifying all forex market segments, the local currency has experienced significant devaluation.

Despite these challenges, the government remains committed to implementing measures to bolster economic stability and foster sustainable development.

The proposed $10 billion initiative signals a proactive step towards addressing Nigeria’s currency woes, aiming to restore confidence in the economy and pave the way for long-term growth and prosperity.

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