The Central Bank of Nigeria (CBN) has said a total sum of $7.6 billion was used to defend the Nigerian Naira in the first five months of the year.

The bank stated in its recent monthly economic report accessed by Investors King.

In January, February and March, CBN intervened in the forex markets with $1.65 billion, $1.39 billion and $1.82 billion, respectively. This continues in the months of April and May.

The apex bank pumped $1.56 billion into the economy in April and expended another $1.318 billion in May to prop up the value of the Nigerian Naira against its global counterparts.

Despite the $7.6 billion, or N3.25 trillion (using the official exchange rate) spent in sustaining the Naira value, the local currency has shed over 100% of its value this year alone and it is presently being exchanged at over N700 to a United States Dollar at the black market.

Nigeria has official exchange rates used by the CBN and the Deposit Money Banks (DMBs), and the unofficial exchange rates, popularly available, at the black market — the main forex section patronise by most Nigerians in need of forex for various reasons.

At the CBN interbank foreign exchange section, the Nigerian Naira was sold at N428.1 to a United States Dollar to DMBs allowed to deal directly with the CBN. Presently, the Naira is exchanged at N710 to a United States Dollar on the black market. Suggesting that the unofficial rate is 65.84% higher than the CBN official rate. 

The International Monetary Fund (IMF) and the World Bank have advised Nigeria to stabilise and unify its exchange rates.

Investors King earlier reported that the World Bank President, David Malpass admonished Nigeria on currency stabilisation when he met with the Vice President, Yemi Osinbajo last week in the United States. 

Talking about the issue, Malpass stressed the economic benefits of unifying the exchange rates and the significance of stabilisation to Nigerians.

He disclosed that a unified exchange rate will significantly improve the business-enabling environment in Nigeria, attract foreign direct investment, and reduce inflation. 

Malpass also advised Nigeria on the importance of increasing its domestic revenue by enlarging the country’s tax net through improved efficiency in tax administration.