The Central Bank of Nigeria (CBN) has quashed rumors of impending Naira redenomination and urged the public to disregard a text message circulating about the introduction of new currency in January 2024. Isa AbdulMumin, the CBN Director of Corporate Communications, stressed that these claims were misleading and designed to create confusion. The CBN reaffirmed that it has no immediate plans to restructure or redenominate the Naira. While the CBN may consider reforms, it will follow the procedures outlined in the CBN Act of 2007. The central bank encouraged the public to ignore speculative reports aimed at causing panic.

In related developments, unofficial exchange rates showed the Naira trading at N1,162 to one US dollar, N1,417 to one British Pound, N1,211 to one Euro, and N873 to one Canadian dollar. Additionally, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed that the government’s ongoing measures are aimed at stabilizing the foreign exchange market to reflect the Naira’s true value by the year’s end. Oyedele mentioned that the government may take action against illicit currency speculators to achieve a “fair price” for the Naira, ideally between N650 and N750 per US dollar. He also revealed plans for new foreign exchange rules, including a crackdown on illegal currency trading.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), acknowledged that these measures would improve forex supply and help resolve confidence issues. However, he cautioned that these are temporary solutions and emphasized the need for a sustainable supply of forex to the market. Yusuf underscored the importance of boosting oil and gas exports to increase forex inflows and called for efforts to enhance non-oil exports. He also recommended establishing an official FX window where people could bring in forex at market rates to improve supply.

Yusuf pointed out that Nigeria needs to address its import substitution strategy and examine the fundamentals of supply, especially for oil and gas exports. On the demand side, he stressed the importance of domestic petroleum production to reduce the pressure on forex demand and ensure a stable forex market.

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