Foreign Exchange Strain: Finance Minister Anticipates $10 Billion Inflow in the Coming Weeks
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced yesterday that the economy is poised to welcome a $10 billion influx of foreign exchange in the coming weeks. This move is aimed at alleviating the liquidity challenges in the foreign exchange market.
During a panel session at the ongoing 29th Nigeria Economic Summit (NES) in Abuja, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, revealed that the government foresees $10 billion in foreign exchange inflows in the near future, rather than months, as part of their efforts to alleviate liquidity pressures in the foreign exchange market.
He mentioned that these inflows are expected to come from various sources, including increased production, reduced expenditure, forward sales transactions, and discussions with sovereign wealth funds that are willing to invest and provide advances. These measures are aimed at addressing the illiquidity challenges currently faced in the forex market.
Edun also highlighted that President Bola Tinubu signed two executive orders to facilitate the domestic issuance of instruments in foreign currency and encourage the return of cash held outside the banking system to banks.
Furthermore, he mentioned that the Central Bank of Nigeria (CBN) is working on new foreign exchange market regulations.
CBN Governor, Yemi Cardoso, mentioned during a panel discussion at the ongoing 29th edition of the Nigerian Economic Summit in Abuja that the current challenges faced by Nigeria's foreign exchange market are intertwined with the broader fiscal and macroeconomic landscape. He emphasized that any conversation focusing solely on exchange rates would be incomplete and fail to capture the full narrative.
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