FG set to dedollarize Nigerian economy as Access, GTB and others adjust exchange rate

• The Nigerian government is working hard to dedollarize the economy while preparing to strengthen the national currency.
• Dedollarization implies that fewer dollars will be used in global financial and trade transactions.
• According to the minister, this measure is part of the efforts of the tax authorities to support the work of the monetary policy authorities.

Zainab Iwayemi’s legitimate journalist has over 3 years of experience covering economics, technology and capital market.

As part of efforts to strengthen the local currency, the Nigerian government is making significant efforts to dedollarize the economy.

According to JP Morgan, dedollarization means that fewer dollars will be used in international trade and financial activities, which will reduce the demand for dollars among businesses, institutions and individuals.

This was announced on Wednesday on the sidelines of the World Bank and IMF annual meetings in Washington, DC, by Olawale Edun, Nigeria’s Minister of Finance and Coordinating Minister for the Economy.

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Premium Times reported that policy experts, market analysts, investors, fund managers and civil society organizations attended the event, called the Global Investors Forum.

According to Edun, efforts are underway to dedollarize the Nigerian economy and increase demand for the local currency.

The minister said the action was part of the tax authorities’ efforts to support the work of monetary policy authorities and promote essential economic changes.

“There is also a move to de-dollarize the Nigerian economy,” Edun said, adding that local service providers, regulators and others are being asked to “bill in naira rather than dollars “.

“This reduces the value of the dollar and of course increases the demand for Naira,” he explained.

Mr. Edun pointed out that the elimination of oil subsidies and associated foreign exchange subsidies indicates that money will flow into government coffers.

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“I think we should not ignore the fact that Nigeria’s primary source of foreign exchange earnings is oil production and it is moving in a positive direction which is expected to yield very good results in the near future,” he said. he added.

Nigerian banks adjust their exchange rates

Legitime.ng reported that the Nigerian currency, the naira, had extended its fall against the dollar in the foreign exchange market.

According to data from the FMDQ Stock Exchange, the naira lost its value for the second day at the Nigerian Autonomous Foreign Exchange Market (NAFEM) to trade at N1,654.09/$1 on Wednesday, October 23.

Wednesday’s exchange rate represents 0.06% or 1.07 naira. depreciation from N1,653.02/$1, which was traded on Tuesday.

Source: Legit.ng