{"id":11911,"date":"2021-09-09T07:54:03","date_gmt":"2021-09-09T07:54:03","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/nigerian-central-bank-we-are-not-worried-about-the-nairas-valuation\/"},"modified":"2021-09-09T07:54:03","modified_gmt":"2021-09-09T07:54:03","slug":"nigerian-central-bank-we-are-not-worried-about-the-nairas-valuation","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/nigerian-central-bank-we-are-not-worried-about-the-nairas-valuation\/","title":{"rendered":"Nigerian Central Bank: We Are Not Worried About the Naira\u2019s Valuation"},"content":{"rendered":"<p><strong>The Central Bank of Nigeria (CBN)\u2019s director of monetary policy, Hassan Mahmud, has suggested that the institution is not worried about the naira\u2019s valuation but is instead interested in \u201cboosting dollar supply on the currency market.\u201d <\/strong><\/p>\n<h2>Naira Depreciation<\/h2>\n<p>According to a <a href=\"https:\/\/www.reuters.com\/article\/nigeria-currency\/update-1-nigeria-central-bank-worried-about-dollar-supply-not-fx-valuation-official-idUSL1N2Q90Q9\">report<\/a>, Mahmud\u2019s remarks were made just a day after the local currency touched a new low of 532 naira for one dollar on the parallel market. This new parallel market exchange rate differs significantly from the CBN\u2019s current spot exchange rate of approximately 411 naira to the dollar.<\/p>\n<p>Yet, in spite of the glaring differences between the two rates, Mahmud, who was addressing a virtual investor conference, insisted that fixing this gap is not the priority of the central bank. Mahmud explained:<\/p>\n<p>We are not really bothered much about valuation. What we are worried about is the supply side and the confidence in the system.<\/p>\n<h2>Forex Shortages<\/h2>\n<p>Since the second quarter of 2020, Nigeria has grappled with shortages of foreign exchange which in turn increase pressure on the naira. To ease pressure on the naira, the CBN has devalued the currency three times since March 2020. In addition, the central bank has imposed a series of restrictions that are aimed at controlling the movement of foreign exchange.<\/p>\n<p><!-- growjs zone placement 31 -->    <!-- end of growjs zone placement --> <\/p>\n<p>Despite the devaluations and the restrictions imposed, the naira has continued to lose ground against major currencies like the U.S. dollar due to what Mahmud calls \u201cmarket failures.\u201d According to the CBN\u2019s director of monetary policy, it is these market failures that prompted the central bank to \u201cadopt a managed float regime.\u201d<\/p>\n<p><em><strong>What is more important for Nigeria, currency valuation or USD supply? Tell us what you think in the comments section below. <\/strong><\/em><\/p>\n<p>Bitcoin News<br \/>\nEmerging Markets, Central Bank of Nigeria, Hassan Mahmud, market failures, Monetary Policy, naira depreciation, naira devaluation, spot exchange rate, USD<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Central Bank of Nigeria (CBN)\u2019s director of monetary policy, Hassan Mahmud, has suggested that the institution is not worried about the naira\u2019s valuation but is instead interested in \u201cboosting dollar supply on the currency market.\u201d Naira Depreciation According to a report, Mahmud\u2019s remarks were made just a day after the local currency touched a&hellip;<\/p>\n","protected":false},"author":0,"featured_media":11912,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-11911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11911"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=11911"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11911\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/11912"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=11911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=11911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=11911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}