The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun has addressed reports credited to the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso of FAAC disbursement resulting in significant pressures in the FX market.
Mr. Edun addressed this concern while taking questions from journalists during the ongoing World Bank/IMF summit in Washington D.C. on the statements by the CBN Governor on FAAC disbursements resulting in the depreciation of the Naira.
According to Edun, the problem will Nigeria’s foreign exchange market is supply and as an oil-producing nation, Nigeria could address that by significantly increasing her oil production output.
He said, “The key about the foreign exchange market really is supply and as you know we are an oil-producing country, we just need to get our oil production up and that will deal with that issue of foreign exchange supply and pressure on foreign exchange anytime there are large flows.”
While speaking on having a single-digit interest rate, Mr. Edun noted that for now, the CBN will continue monetary policy tightening until inflation is defeated and noted that Western economies could drop MPR because they have successfully defeated inflation.
