FG Moves to De-dollarise Nigerian Economy as Access, GTB, Others Adjust Exchange Rate
by by Zainab Iwayemi · Legit.ng News · Join- The Nigerian government is working hard to de-dollarise the economy while preparing to strengthen the country's currency
- De-dollarisation implies that less dollars will be utilised in global financial and commercial transactions
- According to the minister, the measure is part of the fiscal authorities' efforts to assist the work of the monetary policy authorities
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
As part of efforts to strengthen the local currency, the Nigerian government is making significant efforts to dedollarise the economy.
De-dollarisation, according to J.P. Morgan, means that fewer dollars will be used in international trade and financial activities, which will lower demand for the dollar among corporations, institutions, and individuals.
This was announced on Wednesday, October 23, on the fringes of the World Bank/IMF annual meetings in Washington, DC, by Olawale Edun, Nigeria's finance minister and coordinating minister of the economy.
Premium Times reported that policy experts, market analysts, investors, fund managers, and civil society organisations attended the event, which was called the Global Investors' Forum.
According to Edun, efforts are underway to de-dollarise the Nigerian economy and increase demand for the local currency.
The minister said the action is a component of the fiscal authorities' endeavours to support the monetary policy authorities' work and promote essential economic changes.
“There is also a move to dedollarise the Nigerian economy,” Mr Edun said, adding that local providers of services, regulators, and others are being asked to “invoice in naira rather than dollars.”
“It reduces the value for dollar and of course increases the demand for Naira,” he explained.
Mr. Edun pointed out that the elimination of petrol subsidies and associated foreign exchange subsidies indicates that money will be coming into the government's coffers.
“I think we must not miss the fact that the number one source of foreign exchange revenue to Nigeria is oil production and they are facing the direction that is positive and should yield very good results in the near time,” he added.
Nigerian banks adjust exchange rates
Legit.ng earlier reported that the Nigerian currency, the naira, extended its fall against the dollar in the foreign exchange market.
According to data from the FMDQ Securities Exchange, the naira for the second day dropped in value in the Nigerian Autonomous Foreign Exchange Market (NAFEM) to exchange at N1,654.09/$1 on Wednesday, October 23.
Wednesday’s exchange rate represented a 0.06% or N1.07 depreciation compared with N1,653.02/$1, which was traded on Tuesday.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.