Foreign reserves now N28.9 billion, CBN warns goverment against reckless spending

- Nigeria’s foreign reserve has risen to $28.9 billion

- Central Bank of Nigeria warned that the federal government need to avoid reckless spending to improve the country’s economy

- CBN also announced that forex will be made available to those who are importing raw materials to grow the economy

The governor of Central bank of Nigeria (CBN) Godwin Emefiele, has warned that the Nigeria federal government under the administration of President Buhari needs to avoid reckless spending so the country’s economy could grow.

According to Daily Post, the CBN governor who was excited that the country’s foreign reserves has risen to N28.9 billion, warned that the increase in Nigeria foreign reserve does not mean the government can take money from the reserve anyhow.

Foreign reserves now N28.9 billion, CBN warns goverment against reckless spending

He announced that money will only be taken from the fund only when it is necessary to prevent the country from going broke. He said: “The fact that we have began to see some accretion to the reserve does not mean we should be reckless."

He also said: “CBN will continue with the policy of ensuring that forex is made available to those who are importing raw materials and supporting the agricultural sector but not to those who want to engage in less important sectors of the economy.

“It is exciting to see this (rise in foreign resreves) happen. We do not run a floating regime, we run a managed float.

“What that means is that from time to time we will continue to intervene in the market to ensure that the exchange rate does not go beyond our expectations and those interventions would be to moderate the risk as we deem necessary.”

On accusations that the CBN often changes exchange rates, Emefiele appealed that: “Those who are out there fomenting this bad stories in order to portray the monetary authorities in bad light to please assist us, if they have questions they should please approach us, we would respond to them as appropriate.

“What I had expected is that they would talk to us, I know they know but of course the objectives they’re pursuing is best known to them.”Meanwhile, the Central Bank of Nigeria (CBN) on Tuesday, January 17, has passed a circular to inform all Nigerian banks that all transaction in bitcoin and other virtual currencies have been banned in Nigeria.

The circular signed by CBN’s director of financial policy and ‎regulation department, Kelvin Amugo, stated that the move was necessitated by money laundering and terrorism financing risks inherent in operations of virtual currencies.