The Central Bank of Nigeria (CBN) has attributed the instability in the foreign exchange market to “seasonal demands”. According to the CBN governor, he claims that what's playing out in the high rate of our FX volatility is a reflection of the interplay between demand and supply in a freely, functioning market system,” He further stated that
“there is light at the end of the tunnel”, adding that “the tools that the CBN is using is working” and that “we are beginning to get some reliefs”.
After reading this it just made me wonder if my basic economic knowledge is faulty or that I don't really know what's currently happening in the country.
Is there an indication to show that there is any light at the end of the tunnel considering all the short termed policies we've seen the CBN executing?
How is the ban of binance and the delisting of naira from all crypto exchanges a demand and supply concept that's supposed to bring light at the end of the tunnel since that's the only visible thing we've seen them do?
Abeg if you can do a better economic analysis of what the CBN governor mean by this you can just help us analyze it here.
Source.
https://www.channelstv.com/2024/05/21/cbn-links-fx-volatility-to-seasonal-demands-eyes-double-foreign-inflows/
