Foreign Exchange Reserves Inherited By Tinubu Sheds $125m

The foreign exchange reserves inherited by President Bola Tinubu dropped by $125 million two days after he pledged to boost forex inflows into Africa’s biggest economy…..CONTINUE READING...CONTINUE READING

The movement of reserves managed by the Central Bank of Nigeria shows that the gross reserves dropped to $35.02bn on June 2, 2023, as against the $35.147bn held at the close of trade on Friday, May 26, 2023.

Tinubu inherited a reserve of $35.147bn with very weak forex liquidity.

Around $800m belonging to foreign airlines are trapped in Nigeria due to weak dollar liquidity.

Forex illiquidity has also pressured the naira which is trading at N464.67 at the investors’ and Exporters’ window while at the black market, the currency has weakened to N755 per dollar.

Tinubu however believes that with the right policies in place, the foreign exchange quagmire would ease.

He had stated that “Monetary policy needs a thorough housecleaning. The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.

“Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level.

“Whatever merits it had in concept; the currency swap was too harshly applied by the CBN given the number of unbanked Nigerians. The policy shall be reviewed. In the meantime, my administration will treat both currencies as legal tender.”

Tinubu is also looking at agricultural reforms and harnessing the country’s rich oil and gas deposits to attract foreign exchange.

He added, “I have a message for our investors, local and foreign: our government shall review all their complaints about multiple taxations and various anti-investment inhibitions.

“We shall ensure that investors and foreign businesses repatriate their hard-earned dividends and profits home…..CONTINUE READING