Economy

Naira rise: Inject more Dollars to sustain gains – Experts tell CBN

Published

2 years ago

November 11, 2022

The Nigerian naira has made a comeback rising to N730/$ after falling to 900/$ five days ago in the parallel market..

Nigeria’s currency is now standing better than when the Central Bank of Nigeria, CBN, announced the date for the commencement of the naira notes redesign.

Although the official rate of Naira to Dollar is N441.13, according to CBN, DAILY POST gathered that immediately after the announcement of the naira redesign by CBN governor Godwin Emefiele on 26th October, the Naira fell against dollar at the black market.

Speaking on the development in a chat with DAILY POST on Friday, a Financial Inclusion/Wealth Management expert, Mr Idakolo Gbolade, said the CBN should inject more Dollars into the system to sustain the latest Naira’s rise.

He noted that the government should enact a transparency policy to encourage large cash deposits without harassment, provided the source is legitimate.

“This is a welcome development. However, it took the combined efforts of the Economic and Financial Crime Commission, EFCC and other law enforcement agencies to raid currency speculators and Bureau De Change, BDC operators running these schemes to achieve the sanity experienced so far.

“I believe that if the Central Bank of Nigeria, CBN can inject more dollars to the system, it will help significantly. We must also ensure that those caught in these currency manipulation schemes are prosecuted accordingly.

“The CBN can also pursue a policy of instituting transparency in the cash deposit due to the redesigning of the Naira by ensuring that those that lodged large sums into accounts are not unduly harassed if the source of funds are proven to be legitimate or they are just those in the habit of hoarding Naira. The measures will encourage the hoarders to jettison the quest for exchanging Naira for Dollars”, he said.

Also, a Professor of Management and Accounting Lead at City University, Ibadan, Godwin Oyedokun, said the government must make spending cash challenging to sustain the Naira’s gains against the Dollar.

He reiterated that the economic shock which followed the CBN’s naira redesign announcement would be temporary.

He said CBN should transparently and sincerely implement policies required to grow the Nigerian economy.

“I have said it before, the shock which follows the naira redesign announcement by the Central Bank of Nigeria, CBN recently would only create temporary tension but everything will normalize soonest.

“The CBN should not border on the ignorance of some persons. I urge the apex bank to be sincere with its policy implementation.

“However, they may want to review some follow-up processes by extending the deadline by two weeks or more.

“Government must make it difficult for people to spend cash. If you go to a shopping Mall in the UK, you must use your credit cards to shop. It is on this ground that the government will no longer spend more money on printing paper money. The advent of financial inclusion will make this possible”, he said.

Last week the government raided some Bureau De Change, BDC operators to sanitize the forex market.