The Centre for the Promotion of Private Enterprise (CPPE) has called on Olayemi Cardoso, the newly appointed Governor of the Central Bank of Nigeria (CBN), to urgently address the ongoing foreign exchange crisis.
In a statement released on Sunday, Muda Yusuf, the director of CPPE, presented a ten-point agenda to Cardoso. The agenda emphasizes the need to implement policies that restore confidence in the forex market.
Yusuf’s comments come as the naira continues to weaken against the dollar, with an exchange rate of N980/$1 on the parallel market as of Friday.
According to Yusuf, Nigeria is facing a significant confidence crisis in the foreign exchange market. Therefore, CPPE has called for transparent government intervention to mitigate further volatility.
The economic think-tank has tasked Cardoso with implementing policies that enhance stakeholder engagement and strengthen the efficiency of the financial system.
Yusuf also urged the new CBN governor to prioritize the recapitalization of banks and ensure proper management of ways and means to the government.
He stated, “Meanwhile, the CBN must strategically and transparently intervene in the forex market to minimize volatility, within the limits of the available reserves. In addition to the Investors and Exporters (I&E) window, it is now essential to establish an autonomous window within the banking system where the currency can trade freely, devoid of any encumbrances.”
“We must acknowledge the need to prevent the diversion of remittances to other jurisdictions or the black market. Denying the situation is not an option. Clearing the backlog of forex obligations must be prioritized to restore the confidence of both domestic and foreign investors,” Yusuf added.
