Nigeria’s Finance Minister, Adebayo Olawale Edun, has attributed the naira’s incessant decline to approximately $6.8 billion in overdue forward payments within the foreign exchange market, according to Bloomberg.
He insists that addressing this issue is crucial for stabilizing the local currency.
He clarified that the resolution of these unpaid contracts could fortify the naira’s value and open avenues for additional foreign exchange inflow.
Over the course of several months, the Nigerian naira has been on a consistent downward trajectory in terms of its value.
In the currency exchange parallel market yesterday, it neared the threshold of 1000 naira per US dollar.
This depreciation can be attributed to the insufficient supply of dollars by the central bank to this particular market.
- “The issue we have now is that the market is not liquid enough,
- “We are committed to encouraging liquidity based on reforms that have been made at the moment, on the fiscal side and the monetary side. And together with the restoration of trust and confidence, we think the FX flows will return,” Edun, who accompanied President Bola Tinubu to New York for the United Nations General Assembly, said in a recent interview there