The Independent Media and Policy Initiative (IMPI) has praised the fiscal and monetary authorities in Nigeria for their efforts to strengthen the economy. In a recent statement, IMPI Chairman Niyi Akinsijiu commended President Bola Tinubu and Central Bank Governor Yemi Cardoso for their policies aimed at balancing the supply and demand sides of the foreign exchange market.

A key policy introduced on January 31st requires Nigeria’s Deposit Money Banks to bring their Net Open Position (NOP) to a prudential limit by January 1st, 2024. This mandate ensures that banks do not hold more foreign currency assets than liabilities by more than 20 percent. The goal is to prompt banks to offload approximately $7 billion in long currency positions, addressing concerns about the supply of foreign exchange.

In addition to the NOP mandate, the Central Bank also implemented new rules for International Money Transfer Organizations (IMTOs) on the same day. These rules govern remittances in Nigeria, particularly person-to-person payments from individuals abroad to recipients in Nigeria. These remittances play a significant role in Nigeria’s foreign exchange inflow.

IMPI’s recognition of these policies highlights the government’s proactive approach to stabilizing the economy. By addressing both the supply and demand sides of the foreign exchange market, Nigeria is taking steps towards economic resilience and growth.