…Says recession to end by Q3, 2017
The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, has said that the apex bank will continue with its intervention in the foreign exchange market to complement the positive results achieved so far.
The CBN boss, after a meeting at the Senate, said that with the current efforts by the Federal Government to revive the country’s economy, he’s optimistic that the country should be out of recession by the third quarter of this year.
He stated that the development had led to a downward trend in the prices of commodities, indicating a reduction in the rate of inflation.
He said, “In the last two months, the apex bank has been involved in some form of intensive intervention in the foreign exchange market and this has fortunately resulted in a downward trend in the parallel market price of foreign exchange, from as high as N525 to a dollar to as low as N370.
“Right now, it hovers between N370 and N380. I think it’s an opportunity for me to say that we are going to continue this intervention because the reserves look very good. As I speak to you, our (external) reserves stand at above $31bn 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.
“If you want to import raw materials, you will get foreign exchange; you want to import plant and equipment, you will get foreign exchange; you want to pay school fees or you are a small business that wants to buy foreign exchange for you to import your small items, you will procure foreign exchange.”
Emefiele recalled that the CBN had last week announced a policy to encourage foreign investors in the country’s forex market.
“It is the market or window that is opened for them to bring in their foreign exchange and come into the market on what we call a willing-buyer, willing-seller basis, in which case there will be no form of any price intervention by anybody, including the Central Bank of Nigeria.
“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, we should be able to control the price based on the willing-buyer, willing-seller basis,” he said.
