Minister of Finance and Coordinating Minister of the Economy
Wale Edun has stated that around $10 billion of forex inflows is expected
within weeks rather than months.
Edun stated this during a panel session at the ongoing
Nigeria Economic Summit, where he answered questions about stabilising the
foreign exchange market and enshrining liquidity in the market.
He said: “In addition, from the supply of foreign exchange
through NNPC, increased production, reduced expenditure, from transactions such
as forward sales from our discussions with sovereign wealth funds that are
ready to invest and provide advanced alongside that investment, there is a line
of sight of $10 billion worth of foreign exchange in the relatively near future
in weeks rather than months.”
The minister further said President Tinubu has signed two executive orders geared towards ensuring liquidity in the forex market.
“Mr President announced that he had taken measures to ease
illiquidity in the forex market, which we know is very problematic at this
time,” he said.
Edun added. “The market is illiquid; it’s not functioning
properly because there is no supply and there are various reasons for that. The
solution that the President has put on the table is that he has signed an
executive order that effectively allows, under forbearance, all the cash that
is in the domestic economy to legally come into the formal money supply.
“Along with that, there is another executive order that
allows domestic issuance of foreign currency instruments so that they will have
the incentive to provide that foreign exchange from whatever source.”
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