Olawale Edun, Minister of Finance and Coordinating Minister of the Economy for Nigeria, has attributed the Naira’s incessant decline to approximately $6.8 billion in overdue forward payments within the foreign exchange market.
Blomberg disclosed this in an interview with the Minister at the sideline of the 78th United Nations General Assembly session in New York, USA.
Edun insisted that addressing the issue of inadequate liquidity is crucial for stabilizing the local currency.
He clarified that resolving these unpaid contracts could fortify the Naira’s value and open avenues for additional foreign exchange inflow.
The Minister stressed that the federal government is working assiduously towards encouraging liquidity in the forex market.
He added that the FX flows will return with growing investors’ confidence in Nigeria’s market.
“This depreciation can be attributed to the insufficient supply of dollars by the central bank to this particular market.
“The issue we have now is that the market is not liquid enough. We are committed to encouraging liquidity based on reforms made at the moment on the fiscal and monetary sides. And together with restoring trust and confidence, we think the FX flows will return”, he stated.
Since June, the Nigerian Naira has been on a consistent downward trajectory regarding its value.