Nigeria Will Be Out Of Recession In July – CBN Gov

Emefiele gave the assurance after a meeting with the leadership of the Senate, at the National Assembly in Abuja on Tuesday.

The meeting according to the CBN governor was to provide updates on the foreign exchange markets.

The CBN boss said the apex bank will continue its intervention in the foreign exchange market, adding that since the new forex policy has yielded positive results.

Emefiele explained that with the various economic policies in place, there had been gradual fall in the prices of commodities, indicating a reduction in the rate of inflation.

“We are very much optimistic that by the end of the second quarter, or latest the third quarter, we should be out of recession that we are in right now,” he said.

“You would have observed that in the last two months, the central bank has been involved in some form of intensive intervention in the foreign exchange market and this has fortunately resulted in a downward trend in the parallel market price of foreign exchange, from as high as N 525 to a dollar to as low as N 370.

“Right now, it hovers between N370 and N380. I think it’s an opportunity for me to say that we are going to continue this intervention because the reserves look very good. As I speak to you, our (external ) reserves stand at above $31 billion and that provides us enough of firepower or ammunition to be able to defend the currency, and we will do so with all intensity to ensure that foreign exchange is procured by everybody.

“If you want to import raw materials, you will get foreign exchange…you want to pay school fees or you are a small business that wants to buy foreign exchange for you to import your small items, you will procure foreign exchange.”

Mr. Emefiele recalled that the Central Bank had last week announced a policy to encourage foreign investors in the country’ s foreign exchange market.

“It is the market or window that is opened for them to bring in their foreign exchange and come into the market on what we call a willing – buyer, willing – seller basis, in which case there will be no form of any price intervention by anybody, including the Central Bank of Nigeria,” he said.

“Indeed, with the kind of firepower that we have, we are also going to play in that market to ensure that as the prices move on based on the managed float regime that we run, we should be able to control the price based on the willing – buyer, willing – seller basis,” he added.