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Wale Edun: Nigeria expecting $10bn FX inflows in weeks

Wale Edun: Nigeria expecting $10bn FX inflows in weeks
October 23
20:24 2023

Wale Edun, minister of finance and coordinating minister of the economy, says Nigeria is expecting $10 billion in foreign currency inflows in the next few weeks to ease liquidity in the foreign exchange market.

Edun said this during a panel session at the ongoing Nigeria Economic Summit (NES) in Abuja on Monday.

He said the government has a clear view of the inflows into the country in weeks rather than months.

“In addition, from the supply of foreign exchange through NNPC, increased production, reduced expenditure, from transactions such as forward sales, from our discussions with sovereign wealth funds, that are ready to invest and provide advance alongside that investment, there is a line of sight of $10 billion worth of foreign exchange in the relatively near future in weeks rather months,” he said.

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Edun said President Bola Tinubu, on Thursday, signed two executive orders allowing the domestic issuance of instruments in foreign currency and allowing all cash outside the banking system to be brought into banks.

“Mr. President announced that he had taken measures to ease illiquidity in the forex market which we know is very problematic at this time,” Edun said.

“The market is illiquid; it’s not functioning properly because there is no supply and there are various reasons for that.”

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Also speaking at the NEC summit, Tinubu said crucial plans are underway to improve foreign exchange liquidity.

The president added that his administration will honour every “legitimate contract with respect to the nation’s foreign exchange obligations”.

On Monday, the naira fell to N1,225 per dollar at the parallel section of the foreign exchange (FX) market — continuing its depreciation streak.

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