The Digest:
Vice-President Kashim Shettima has revealed that the naira would have appreciated to N1,000 per dollar within weeks if the Central Bank of Nigeria (CBN) had not intervened in the foreign exchange market on Monday to ensure stability. Speaking at the Progressive Governors Forum summit in Abuja, Shettima said: "Our currency is strong and stable. In fact, if not for the interventions by the Central Bank of Nigeria (CBN) yesterday, we are going to attain the $1,000 in weeks, not in months." He described the CBN's intervention as a "generous" move for market stability and warned currency speculators: "For some of my friends, especially one of our party leaders who take delight in stockpiling dollars, it is a wake-up call. Our economy is picking up." Shettima also noted that five of the seven major investment decisions made in Africa last year were in Nigeria, signalling growing investor confidence. The naira traded at N1,340/$ on February 20.
Key Points:
- The revelation suggests underlying strength in the naira that CBN chose to moderate.
- It signals the CBN's priority of stability over rapid, potentially volatile appreciation.
- Currency speculators face losses, while importers and businesses gain from stability.
- This reflects confidence in Nigeria's economic trajectory and reforms.
- The timing, with investments rising, reinforces positive outlook.
Sources: TheCable, Progressive Governors Forum
