Members of the Association of Corporate Treasurers of Nigeria and financial market analysts have urged the Central Bank of Nigeria to allow the forces of market to dictate and stabilise the naira.
They also called on the apex bank to cease its intervention in the forex market.
“We want a predictable market that aids planning, eliminates the multiplicity of forex rate, inhibits dollar leakages, crowds out interest rates and makes the government unable to fund the economy. Majority of inflows comes in form of portfolio investments rather than as Foreign Direct Investments,” they said.
They keynote speaker and member, Monetary Policy Committee of the CBN, Dr. Doyin Salami, explained that Nigeria needed to become more productive to enable it export products that can attract more foreign currency into the country.
Salami said the country cannot encourage manufacturers when there were no provisions for social amenities to boost production and increase output.
He said, “With all these volatilities and uncertainties, how do you expect manufacturers to plan? The system must not create the opportunity for people to make money without engaging in production. There must be increase in production and exportation with less emphasis on import to attract more dollars into the country.”
The Vice-President and Divisional Head, Corporate Planning, FMDQ OTC Securities, Kaodi Ugoji, said, “It is better to allow the market to determine the value of the naira. There is no reason the official rate should be different from the parallel market rate. There should be a level playing field for all operators.”