The Lagos Chamber of Commerce and Industry (LCCI) has highlighted the imperative of maintaining discipline in the foreign exchange market to uphold the steady appreciation of the Naira.
In an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos, Gabriel Idahosa, President and Chairman of the Council of LCCI, commended the Central Bank of Nigeria (CBN) for its efforts in enforcing discipline. He attributed the recent strengthening of the Naira to the crackdown on speculative activities.
“The CBN is taking commendable steps on the monetary front. It is crucial to continue exerting discipline in the foreign exchange market. The devaluation of the Naira in the past six months was primarily due to rampant speculation rather than any sudden economic downturn in Nigeria,” stated Idahosa.
He elaborated on how reckless speculation, devoid of genuine trade transactions, contributed to the depreciation of the Naira. However, with the Central Bank’s intervention to curb speculation, the Naira’s value began to rise rapidly.
Idahosa emphasized that the Central Bank’s current strategies aim to consistently maintain discipline in the foreign exchange market. He also stressed the importance of reducing the number of Bureau de Change operators, noting that many of them were not actively contributing to international trade.
He commended the Central Bank’s initiative to enforce documentation and identification of buyers and sellers at Bureau de Change locations, aiming to deter reckless speculation and illegal financial transactions.
On the fiscal side, Idahosa urged President Bola Tinubu to prioritize a nationwide export drive as a crucial step to bolstering the Naira and securing essential foreign exchange reserves. He highlighted the significance of fostering a culture of export among Nigerians at all levels of enterprise to reduce reliance on imports and enhance the country’s economic resilience.
As stakeholders continue to monitor developments in the forex market, the emphasis on discipline and proactive measures remains vital for Nigeria’s economic stability and growth.
Credit: News Agency of Nigeria (NAN) Text Excluding Headline
