Brace up, naira won’t stabilise soon

The fate of the naira no doubt hangs on the balance, what with the unprecedented fall of the local currency, which exchanged for N400 to the green back last week, a development, many financial and economic analysts argue does not bode well for the economy.
The poor fortunes of the naira may not stabilize anytime soon, but analysts contend that the immediate measure to the current situation is for the Central Bank of Nigeria (CBN) to relax some of its forex rules, otherwise the local currency would continue on a free fall.
In the view of Johnson Chukwu, CEO of Cowry Asset Management Limited, the country needs to build up demand for forex, which has shifted to the parallel market, making it the ruling market for importation of goods.
For Dr Ayo Teriba, a renowned economist, the fall in value of the naira is attributable to the inability of the country to attract Foreign Direct Investment (FDI) in critical infrastructural sectors. Much as he agreed the fall in oil prices contributed to the slide, he said Nigeria should have cushioned the effects by offering some of its shares in the wholly owned parastatals to foreign investors.
The poor fortunes of the naira may not stabilize anytime soon, but analysts contend that the immediate measure is for the CBN to relax some of its forex rules, otherwise the local currency would continue on a free fall.
Teriba who is Chief Executive Officer, Economic Associates, added that the many foreign trips of President Muhammadu Buhari should start focusing on how to convince the Diaspora Community to invest back home.
This, he said, will help to increase dollar supply and provide liquidity that will galvanise revival of the economy.”
The President Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said government must consider strategic partnerships with focus groups, like his, to save the naira from further slide. He said all those involved in the supply market should be engaged against speculative activities in the sector.
Teriba added that the many foreign trips of President Muhammadu Buhari should start focusing on how to convince the Diaspora Community to invest back home.

source:Linda ikeji

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