THE NATION
he Central Bank of Nigeria (CBN) has concluded plans to stem the continuous slide of the naira against the dollar.
Top of these plans is to flood the market with dollars, it was learnt yesterday.
A CBN board member, who spoke to our correspondent under anonymity, said: “At this point, the bank is going to inject foreign exchange into the market to stabilise the exchange rate.
“It will be a desirable thing, and that’s the essence of having reserves to stabilise the naira at any point in time.”
The board member noted that previous interventions by the CBN included putting money into the foreign exchange market when required.
He added that the decision is “a management routine function”, adding: “It’s a desirable thing to help the naira at this point.”
The CBN board member argued that to stop the naira from further haemorrhaging, the advisable thing is “as much as possible to flood the market with foreign exchange”.
“I am sure this government did not want any demand management policy, but such policies are also called for at this point.
“If they are operating a free market, the demand is overwhelming and you need to manage that demand, restrict that demand with certain policies.
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