CBN explains reason for decline in value of Naira

A senior official of the Central bank of Nigeria (CBN) on Monday in Abuja, blamed the devaluation of the naira on the effects of COVID-19 pandemic on the economy.

The Deputy Governor, Corporate Service Department of the apex bank, Mr Edward Adamu, made the revelation at the 2022-2024 Medium-Term Expenditure Framework/Fiscal Strategy Paper (MTEF/FSP) committee interactive session with Ministries, Departments and Agencies (MDAs).

According to Adamu, the exchange rate itself is determined by the forces of demand and supply and that there are three main avenues by which Nigeria gets foreign exchange.

“We have proceeds from sale of crude oil, we have foreign portfolio inflows and remittances; those are the three major ways that we get forex.

“Crude oil sale has not been as high as we all want it to be and obviously in the aftermath of COVID-19, the global economy grounded to a halt and the use of crude oil also was halt.

“To the extent that sometimes in April last year, we had crude oil selling at a negative money which means that, people were being paid to store what they bought and so that avenue for forex inflows was significantly reduced.


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