The Federal Government is set to automate transactions across the entire foreign exchange (FX) market, aiming to tackle widespread arbitrage and curb speculation on the Naira.
The announcement came from the Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, during the 1st panel session at the ongoing 29th Nigeria Economic Summit (NES#29) in Abuja.
Mr. Edun’s statement followed President Bola Tinubu’s commitment to addressing liquidity in the FX market and clearing all backlog.
Edun emphasized that the FX market currently experiences significant arbitrage in all transactions, and the government is determined to monitor these activities closely, identify offenders, and apply appropriate legal penalties.
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He highlighted that President Tinubu recently signed two Executive Orders. One of them provides forbearance for all cash in circulation to enter the formal financial system, thereby legally boosting the money supply.
The other Executive Order facilitates the entry of foreign exchange from private sources into the domestic market.
Edun further stated that this initiative is part of a comprehensive review and overhaul of the foreign exchange market, which will be introduced in the near future.
He acknowledged the inefficiencies in the country’s FX market, largely due to liquidity issues, and expressed the government’s commitment to revamping the system.
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The Minister of Finance declared, “The foreign exchange market will be streamlined and reformed to ensure that all legal and legitimate transactions operate within the purview of the authorities and the formal foreign exchange market. Anything outside of this will be considered illegal, a criminal offense, and will face legal consequences.”
The 29th Nigerian Economic Summit is being held under the theme: “Pathways to Sustainable Economic Transformation and Inclusion.”
