Forex crisis: FG plans talks with looters, eyes mop-up from hoarders

To sustain the steady appreciation of the naira against the dollar, which hit a record low on Tuesday, reaching a record $1,310/$, the Federal Government has begun moves to bridge the dollar supply gap fuelling the free fall.

We learnt from top government sources that the government was reaching out to individuals hoarding the dollar, establishments and those found to have looted the treasury to make them “bring their monies to the mainstream market.” It was learnt that the government was willing to do whatever was necessary to solve the problem.

A top source in the Presidency said the initiative formed the crux of two Executive Orders recently signed by President Bola Tinubu.

The orders are part of the Federal Government’s measures to ensure liquidity in the nation’s forex market, stabilise the market and sustain the appreciation of the naira, which had fallen against the dollar in recent weeks.

Although the orders are now in operation, their content and the ramifications of the interventions are unknown as they are yet to be gazetted.

Speaking on the panel session of the 29th Nigeria Economic Summit, held in Abuja last week, Finance Minister and Coordinating Minister of the economy, Mr Wale Edun, said, “Mr President announced that he had taken measures to ease illiquidity in the forex market, which we know is very problematic at this time.

“The market is illiquid; it’s not functioning properly because there is no supply, and there are various reasons for that. The solution that the President has put on the table is that he has signed an executive order that effectively allows, under forbearance, all the cash that is in the domestic economy to legally come into the formal money supply.