CBN dismisses fears over foreign reserves’ decline

Nigeria’s foreign reserves position of $44 billion is sufficient enough for financing between 14 and 17 months imports, the Central Bank of Nigeria (CBN) said in Abuja yesterday.

The apex bank also dismissed a claim linking recent reduction in the level of foreign reserves to the actions by political actors, stressing that at the current $44 billion position, the reserves is way above the internationally acceptable three months financing level.

Director of Corporate Communications at CBN, Isaac Okorafor said these in Abuja when he spoke during the CBN Special Day at the ongoing 13th Abuja Trade Fair.

Okarafor said the nation’s foreign reserves fell, “because of global squeeze on emerging markets, which was consequent upon increasing interest rates in the United States of America.”

He explained that other developing and emerging markets such Turkey, Brazil, South Africa, Argentina and even China were facing a similar dilemma.

The CBN spokesman also assured depositors of defunct Skye Bank of safety of their deposits in the succeeding Polaris Bank.

Okorafor said that Polaris Bank had been duly registered by Corporate Affairs Commission (CAC) and licenced by CBN.

He noted that the overall impact of CBN’s numerous interventions would continue to enhance the operational capacity of Small and Medium Enterprises (SMEs).

These interventions of the CBN he said, “has translated into a reflation of our economy with attendant growth and development.”

The CBN, he said, will continue to ensure that it delivers on its core mandate of ensuring monetary and price stability. However, it cautioned, “it will also continually roll out proactive and innovative policies, which would ensure that all economic subsector especially the SMEs in Agribusiness receive the desired support.

“We are determined to ensure that Nigeria’s economy remains in a state of consistent growth even as we focus on economic diversification and national food sufficiency.”

Earlier the President, ABUCCIMA, Prince Adetokunbo Kayode, lauded the apex bank for being focused and visionary in the regulation, preservation and stabilization of the integrity of Nigeria’s currency.

“In the area of Development Finance, the CBN has ensured the supply of finance to various sectors of the economy, which has promoted the growth of the economy in a holistic manner making development, welfare improvement to proceed at a faster rate,” he said.

“Similarly, the Nigerian Payments System has witnessed remarkable achievements in the recent past, with the introduction of a number of initiatives under the Payments System Vision 2020.

“The Monetary Policy Committee of the bank, which has the responsibility of formulating monetary and credit policy has also done remarkably well in either adjusting of retaining key indicators.”

Meanwhile, banking watchdog has injected yet another sum of $210 million into the inter-bank Foreign Exchange Market.

Figures obtained from the apex bank yesterday indicate that authorized dealers in the wholesale segment of the market were offered the sum of $100million, while the Small and Medium Enterprises (SMEs) segment received the sum of $55 million.

Similarly, customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

While confirming the figures, the Bank’s Director, Corporate Communications Department, Mr. Isaac Okorafor, reiterated the CBN’s commitment to continue to boost interbank foreign exchange market to ensure liquidity in the market and sustain stability in the market.
It will be recalled that last Friday, the lender injected the sum of $210million into the inter-bank foreign exchange market.
Meanwhile, the Naira yesterday exchanged at an average of N361/$1 in the Bureaux De Change (BDC) segment of the market.