Why we plan to digitise FX transactions — FG

The Federal Government has concluded plans to automate transactions in the entire foreign exchange (FX) market to check widespread arbitrage and tame those speculating on the Naira.

This was disclosed on Monday by the Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun during the 1st panel session at the ongoing 29th Nigeria Economic Summit (NES#29) in Abuja.

Mr Edun made the remarks shortly after President Bola Tinubu had pledged his administration’s commitment to deal with liquidity in the FX market and to pay in full all backlog.

Mr Edun pointed out that all dealings in the FX market are enveloped in huge arbitrage, and will be thoroughly monitored, offenders fished out and punished according to the extant laws.

According to him, President Tinubu signed two Executive Orders last week, noting that one of them allows forbearance for all the cash in the economy to come into the system and formally boost the money supply legally.

The other Executive Order, he said is the provision of incentives to allow foreign exchange from whatever private sources to enter the domestic market.

Mr Edun stated that this is part of a broader review and revamping of the foreign exchange market that will be unveiled soon, and acknowledged the inefficiency of the country’s FX market due to illiquidity in the system, pledging the government’s preparedness to turn around the system for good.

The Minister of Finance said, “Foreign exchange market will be simplified and reformed such that all legal and legitimate transactions will fall within the purview of the authorities and in the formal foreign exchange market. Anything outside that will be illegal, a criminal offence and will be punished”.

The 29th Nigerian Economic Summit is convened under the theme: “Pathways to Sustainable Economic Transformation and Inclusion”.

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