The foreign exchange market will soon witness some stability as the country is expecting an inflow of $10 billion in the next few weeks.
Minister of Finance and coordinating of the economy, Mr. Wale Edun stated this during a panel session at the ongoing Nigeria Economic Summit.
Responding to posers on stabilising the foreign exchange market and enshrining liquidity in the market, the minister stated that in addition to the supply of foreign exchange through NNPC, increased production, reduced expenditure, from transactions such as forward sales, from our discussions with sovereign wealth funds, that are ready to invest and provide advanced alongside that investment, there is a line of sight of $10 billion worth of foreign exchange in the relatively near future in weeks rather months.
Edun further stated that President Bola Tinubu had signed two executive orders geared towards ensuring liquidity in the forex market.
“The market is illiquid; it’s not functioning properly because there is no supply and there are various reasons for that. The solution that the President has put on the table is that he has signed an executive order that effectively allows under forbearance all the cash that is in the domestic economy to legally come into the formal money supply”
“Along with that, there is another executive order that allows domestic issuance of foreign currency instruments so that they will have the incentive to provide that foreign exchange from whatever source.”