In the near future, the federal government will automate transactions in the entire foreign exchange market to tame wide arbitrage and punish naira speculators.

Wale Edun, Minister of Finance and coordinating minister of the Economy, mentioned this during the first-panel session at the 29th Nigeria Economic Summit (#NES29).

His comment came shortly after President Tinubu had told summiteers that he has taken steps to deal with liquidity in the fx market and made a commitment to sort out all backlog.

According to him, all dealings in the fx market, from the official to the money changers where huge arbitrage has consistently occurred, will be thoroughly monitored and offenders fished out and punished.

He also disclosed that the president signed two executive orders last week.

One of them is an executive order that allows forbearance for all the cash in the economy to come in and formally boost the money supply legally.

There’s another executive order that allows domestic issuance of foreign currency issues so that it will allow incentive to provide that foreign exchange for whatever source.

He said alongside this and part of a broader sort of review, there is a revamping of the foreign exchange market, which he said will be unfolded as time goes.

He admitted that Nigeria’s foreign exchange market is not functioning effectively due to illiquidity and that the government is prepared to do everything required to change the status quo.

“Foreign exchange market will simplified and reformed such that all legal and legitimate transactions will fall within the purview of the authorities and in the formal foreign exchange market. Anything outside that will be illegal, a criminal offence and will be punished,” Edun stated.

In his comment, Yemi Cardoso, Governor of the Central Bank of Nigeria (CBN) assured that the apex bank, going forward, will take its objective of price stability “very seriously indeed.”

He said the plan is to have a foreign market that is fit for purpose and works for everybody, which can be predictable and with no opacity.

“We are going to come out with an elegant document that will tell you the rules,” the governor assured.

FreeStuffsNG:
Speculators currently behind the unpatriotic and criminal arbitrage are already trapped with the executive orders and will get burnt las las ni

They want to keep on speculating , hype the overvalued street value of USD and call it parallel market price or projection. Smh. Eyin obaiye je lo ma re.

This current FG will not go borrowing money or use hard-earned forex inflow to fight against the overvalued US dollar on the streets. You all will get burnt las las.

Those being deceived to keep hoarding forex will get burnt severely las las. It's laughable ignorance when poorly educated people who have almost 100% of their day to day expenses in naira still go and hoard forex and crowd out those who genuinely need it. If they don't get burnt, no defence of the naira will. Not even EFCC that Mr Emefiele kept sending after them will make them stop.

I am 100% in support of the steps FG through CBN is taking to allow free float to determine our real aggregate demand till those unpatriotic elements are burnt by real market forces.

God bless President Bola Ahmed Tinubu. God bless Mr Cardoso. God bless Nigeria for ever! Check my signature for free stuffs!

Phoen1X:
As empty as their last eight years promises,...we have learmt not to mind them.

FreeStuffsNG:


Remarks from the Minister of Finance and the CBN Governor at the National Economic Summit Group.
1. The FX market is illiquid because there is not enough supply of foreign exchange in the system due to various reasons.

2. The bleeding with respect to Nigerian resources has stopped.

3. The time to be concerned has gone as the country is now on the path of rebuilding.

4. There is enormous interest from foreign portfolio investors and foreign direct investors.

5. The President has signed an executive order that will effectively legally allow all the cash in the domestic economy to come into the system.

6. There is another executive order that will allow domestic issuance of foreign currency instruments.

7. Revamping of the FX market to ensure simplification and digitization of the FX market through a robust regulatory framework.

8. There is an expectation of a $10 billion inflow to clear the backlog of FX obligations in the coming weeks.

9. There will be supply of FX from NNPC, Sovereign wealth fund, foreign portfolio investors.

FreeStuffsNG:
Speculators currently behind the unpatriotic and criminal arbitrage are already trapped with the executive orders and will get burnt las las ni

They want to keep on speculating , hype the overvalued street value of USD and call it parallel market price or projection. Smh. Eyin obaiye je lo ma re.

This current FG will not go borrowing money or use hard-earned forex inflow to fight against the overvalued US dollar on the streets. You all will get burnt las las.

Those being deceived to keep hoarding forex will get burnt severely las las. It's laughable ignorance when poorly educated people who have almost 100% of their day to day expenses in naira still go and hoard forex and crowd out those who genuinely need it. If they don't get burnt, no defence of the naira will. Not even EFCC that Mr Emefiele kept sending after them will make them stop.

I am 100% in support of the steps FG through CBN is taking to allow free float to determine our real aggregate demand till those unpatriotic elements are burnt by real market forces.

God bless President Bola Ahmed Tinubu. God bless Mr Cardoso. God bless Nigeria for ever! Check my signature for free stuffs!

FreeStuffsNG:


https://businessday.ng/news/article/775395-naira/

Acekidc4:
People should give Tinubu time, he will surely perform and do wonders. You all will thank him later. Things are really bad, we all know but it won't be for long.