Vice President Kashim Shettima criticized those finding humor in the depreciation of the Nigerian naira, urging unity to address the economic challenges. Speaking in Abuja, he expressed dismay at the naira plummeting to N1500 against the US dollar, emphasizing the need for collective efforts to revive the economy. Shettima condemned individuals celebrating the situation on Twitter, calling them “clowns,” DAILY POST reports.
The naira’s recent 42% decline against the US dollar within two days prompted concerns.
Data from FMDQ revealed a record low of N1,482.57 per US dollar on Tuesday, marking a 9% or 133.94 loss compared to the previous day’s close. Meanwhile, In a bid to stabilize the nation’s volatile exchange rate, the Central Bank of Nigeria (CBN) has issued a circular instructing Deposit Money Banks to sell their excess dollar stock by February 1, 2024.
The move is part of a series of initiatives aimed at addressing concerns over commercial banks holding long-term foreign exchange positions to profit from exchange rate fluctuations.
The circular, titled
“Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks,”
outlines guidelines to mitigate the risks associated with banks holding large foreign currency positions.
This directive comes shortly after another circular warning banks and foreign exchange (FX) dealers against reporting false exchange rates.
One significant development contributing to the volatility in the exchange rate is the adjustment of the methodology used to calculate the nation’s official exchange rate by the FMDQ Exchange.
This adjustment has led to a shift in the Nigerian Autonomous Foreign Exchange Market rate from approximately N900/dollar to N1,480/dollar.