CBN to Retain Foreign Currency Controls

CBN Forex


The Central Bank of Nigeria, CBN, will retain foreign currency controls following  concerns of slow growth, a senior bank official revealed.

The apex bank also plans to raise N127.07 billion in treasury bills with maturities of three months to one year at an auction on October 7.

It said it will issue new 91-day paper worth N25.40 billion, N33.49 billion in 182-day bills and N68.18 billion in one-year debt, using the Dutch Auction System. Results of the auction are expected to be released the following day.

Nigeria issues treasury bills twice-monthly to fund the government budget deficit and manage liquidity in the banking system.

Nigeria’s economic growth was 2.35 per cent in the second quarter year on year, compared with 6.54 in the same quarter of 2014.

“We are concerned that we are having declining growth,” CBN’s monetary policy director, Moses Tule, was quoted by Reuters as saying.

Tule defended the bank’s decision to impose currency controls to preserve foreign reserves, which fell 23 per cent in the year to September 23.

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  1. […] has advised the Central Bank of Nigeria (CBN) and other central banks in Africa to devalue their currencies in order to absorb shocks to their […]

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