The federal government of Nigeria will punish banks that are circumventing presidential orders. President Buhari has ordered that importers and banks should reduce foreign exchange to allow the country to recover economically.
Nigerian president Muhammadu Buhari has indicated that the banks and individuals who will not heed his rule will be punished .the current dollar market is closed paving way for the growing of the local economy and the strengthening of local currency. The president warned people that round tripping him will bring heavy penalties. There have been speculations that some banks get forex allocation from the central bank and hey divert to parallel market. Speaking during an Al Jazeera interview the president indicated that the federal government would issue sanctions to anyone who is given dollars to buy essential products.
On the other hand, the central bank of Nigeria governor Mr. Godwin Ifeanyi Emefiele indicated that the central bank was also monitoring the situation in the country. The current economic status in Nigeria is deplorable considering the fact that the local currency is performing poorly against major international currencies. The governor said that it is not the institution alone that will be penalized but also the management of the institution that is round tripping the rule. The president further said that devaluation of the local currency was not a move that he anticipated to make.
Buhari said that countries that play with the currency have huge production capacity that will cushion the currency against falling against major world currencies. These nations have infrastructure, communications, and heavy factories. According to the president, Nigeria imports virtually everything and devaluing the currency will throw the nation’s economy into turmoil. The country’s exchange rate policy is in tandem with the goals of the federal government and that the nation will not heed to advice that is against their policy.