The Central Bank of Nigeria has hinted that the monthly disbursements from the Federation Account Allocation Committee (FAAC) to states are reasons for the poor performance of the Nigerian currency.
Yemi Cardoso stated this during the press briefing after the CBN’s 297th Monetary Policy Committee (MPC) meeting.
According to the CBN governor, there is a correlation between the disbursements and the poor performance of the naira.
He further revealed plans by the Central Bank of Nigeria (CBN) to monitor disbursement by the FAAC to determine its impact on prices.
His words:
Meanwhile, the naira on Tuesday, September 24, depreciated by N95.83 on the official foreign exchange (FX) market.
According to the data from FMDQ Securities Exchange Limited, the naira fell by 5.8%, with the dollar being quoted at N1,658.48 on Tuesday, September 24, compared to N1,562.66 quoted on Monday.
The fall of the come despite a 66% increase in dollar availability, with a total of $166.36 million exchanged on Tuesday, up from $100.21 million recorded the previous day.
The naira also depreciated in the parallel market, often called the black market. By Tuesday, the local currency had slipped to N1,675, losing N12 from the N1,663 quoted previously.
TimesNow.com.ng earlier reported that the CBN directed that all funded accounts without a Bank Verification Number and National Identification Number be restricted with no further transactions permitted.
This was disclosed in a circular to all commercial, merchant, non-interest and payment service banks and other financial institutions and mobile money operators.
The December 1, 2023 circular, which applies to all institutions regulated by the CBN, ordered banks to place a “Post No Debit or Credit” on any unfunded account.
Proofreading by James Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
