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Expert Calls For Action As Finance Minister Blames Naira Crash On $6.8bn Overdue Payment



Wale Edun who accompanied President Bola Ahmed Tinubu to New York for the United Nations General Assembly said this as the naira slumped to $995 per dollar at the parallel market on Thursday.

“The issue we have now is that the market is not liquid enough,” Edun said.

Edun was made the finance minister last month said the issue can only be resolved with high forex inflows.

“We are committed to encouraging liquidity based on reforms that have been made at the moment, on the fiscal side and the monetary side. And together with the restoration of trust and confidence, we think the FX flows will return.”

On Thursday, the Central Bank of Nigeria postponed its September Monetary Policy Meeting as it is awaiting the confirmation of the new apex bank governor, Olayemi Cardoso.

Cardoso will be faced with the job of driving down inflation of 25.8 per cent and the dwindling currency.

Already, the CBN introduced a managed forex float and collapsed the forex windows into the Nigerian Foreign Exchange Market in order to attract investors.

Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprises said in a response that, “I think the CBN has managed the float well so far and for us to assess the performance of the CBN, we need to situate it in the context of the capacity of the CBN itself to be able to support the forex market.

“CBN’s capacity has been severely or considerably eroded, and that is a variable that is not squarely within the control of the CBN.”

Yusuf said there is “very little that can be done. What ought to be done has been done,” adding that the whole idea of liberalising the market is to ensure that you have more inflows, especially from autonomous sources.