The Nigerian Senate yesterday summoned governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso over the free fall of the Naira and hyper inflation which is compounding the challenges of the country.
The summon was issued through its Committee on Banking, Insurance and other Financial Institutions headed by Senatorial Adetokunbo Abiru.
The governor and his team were asked to appear on Tuesday next week to explain the state of the economy and the free flow of the Naira at the forex market.
The Committee at a meeting on Wednesday expressed concern over the endless weakling of the Naira that saw it rose to N1,520 to a US dollar as at Wednesday.
Speaking with journalists after the meeting held behind closed door at the National Assembly, Senator Abiru said the state of the economy, especially the inflation index was of great concern to the lawmakers.
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He said “We have held a meeting this afternoon essentially to focus on the direction of the Nigerian economy.
“We are all living witnesses of what is going on.
“Underlining the major issue of the economy is the way the inflation index has been and of course it is a major concern to us.
“We have deliberated among ourselves. Critical issues were addressed and we believe that the next line of action is to summon the governor of the Central Bank on Tuesday at 3 O’clock to brief us properly on the state of the economy.
“That we have resolved and will communicate to the governor of the Central Bank after which we will have further communication with members of the press.”
Meanwhile, amid its fresh moves to stabilise the nation’s volatile exchange rate, the Central Bank of Nigeria has ordered Deposit Money Banks to sell their excess dollar stock latest February 1, 2024.
The CBN, which made the disclosure in a new circular released on Wednesday, also warned lenders against hoarding excess foreign currencies for profit.
According to officials, the central bank believes some commercial banks hold long-term foreign exchange positions to enable them profit from the volatile movements of exchange rates.
Africa Today News, New York reports that the new circular introduces a set of guidelines aimed at reducing the risks associated with these practices.