As the Monetary Policy Committee (MPC) set to meet between 23 and 24 May, 2016, it has been urged to set a policy that would stabilise and protect the country’s currency from devaluation.
In a statement in Lagos at the weekend, an economist, Dr Ayo Teriba is of the view that if the foreign exchange supply issue was not solved, the country faced the risk of repeated rounds of devaluation of its currency.
He emphasised that the upcoming MPC meeting of the Central Bank of Nigeria (CBN) should address the issue of foreign exchange, stressing that solving the foreign exchange issues would stabilise the naira and liberalise capital inflow into the country.
He said that the foreign exchange shortfall could be supplemented through export earnings, foreign direct investments and Diaspora inflows.
According to him, the country’s foreign exchange challenges, occasioned by dwindling revenue from crude oil, was responsible for the pressure on CBN from some quarters that it should devalue the naira.
“Unless the MPC comes up with ideas on how government can boost FOREX inflows, there is nothing they can do about the naira,” Teriba emphasised.
He called on the government to stimulate the economy by creating an enabling environment and incentives that would encourage the private sector to explore and drive the key sectors of the economy.
By our Correspondent
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