Naira appreciation: Onakoya reveals CBN’s policy responsible for gains in forex market

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Naira Appreciation,Onakoya

Prof Adegbemi Onakoya, a Finance and Business Transformation expert, has said the Central Bank of Nigeria's recent circular on harmonizing reporting requirements for foreign currency exposures of banks has boosted activity in the Nigerian Autonomous Foreign Exchange Market, NAFEM, and Naira's weeks-long gains.

Prof Adegbemi Onakoya, a Finance and Business Transformation expert, has said the Central Bank of Nigeria's recent circular on harmonizing reporting requirements for foreign currency exposures of banks has boosted activity in the Nigerian Autonomous Foreign Exchange Market, NAFEM, and Naira's weeks-long gains. Onakoya disclosed this at the weekend during the Nairametrics Economic Outlook webinar.

Onakoya stressed that CBN's January 31, 2024 circular to banks, titled 'Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks,' which mandated the harmonization of reporting and required banks to maintain adequate stocks of high-quality liquid foreign assets, like cash and government securities, in each significant currency, has boosted transparency in the foreign currency market.

 

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