Nasiru Aminu Ahmad
The monetary authority is saddled with the responsibility of preserving the external reserve to safeguard the international value of the nation’s legal tender currency and ensure price stability. This task makes the Central Bank of Nigeria (CBN) responsible for reserve management and exchange rate stability, as enshrined in the CBN Act, 2027.
Intriguingly, Nigeria has the highest foreign reserve in Africa, after Algeria and South Africa, but its currency is ranked 27th in Africa. Though, other economic variables may explain otherwise, but the ability to intervene in the market is usually the function of FX availability.
Last year, in August, JP Morgan Chase the custodian of the nation’s foreign reserve raised a question as to whether the country has up to $33.12 billion, considering securities lending ($5.5 billion), foreign currency forwards ($6.84 billion), and currency swaps ($21.3 billion) contracts.
The private entity…
Source: Thisday Newspaper
