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No Plan To Redenominate Naira, CBN Insists

The Central Bank of Nigeria (CBN) has clarified that it has no intention of redenominating the Nigerian currency, the Naira. CBN’s Director of Corporate Communications, Isa AbdulMumin, made this statement in Abuja and urged Nigerians to disregard a circulating text message claiming that a new currency would be introduced in January 2024.

AbdulMumin expressed concern about the message gaining traction and causing debates about its potential impact on the Nigerian economy. He emphasized that the text message is misleading and designed to create confusion.

He emphasized that the CBN has no plans to restructure or redenominate the Naira, and any potential reforms will adhere to established procedures outlined in the CBN Act, 2007.

The CBN urged the public to ignore the speculative news report intended to incite panic.

Meanwhile, in the unofficial market, the Naira exchanged for N1,162 to one US dollar, N1,417 for one British Pound, N1,211 for the Euro, and N873 for one Canadian dollar (CAD).

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed that the Federal Government’s efforts to stabilize the foreign exchange market would result in the Naira reaching its true value by the end of the year. He mentioned the government’s intention to address illicit currency trading and set transparent rules for the official market after clearing a backlog of $6.7 billion in dollar demand.

Dr. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), acknowledged the effectiveness of these measures in addressing the backlog and boosting confidence in the system.

However, he cautioned that a sustainable supply of forex should be ensured and emphasized the need to focus on fundamentals like boosting exports, especially in oil and gas, and removing barriers to non-oil exports. Additionally, addressing domestic production of petroleum products would reduce pressure on forex demand.

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