The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, has called on the Central Bank of Nigeria (CBN) to take decisive actions to alleviate pressure on the foreign exchange (FX) market.
In an interview with journalists in Lagos on Friday, Dr. Yusuf discussed the need for CBN to enhance liquidity and foster stability in the FX market. He acknowledged the steps taken by the new CBN leadership in clearing a substantial portion of the FX backlog, which has positively impacted some banks.
Dr. Yusuf stated, “Efforts to enhance crude oil exports are also underway, as an increase in output would significantly bolster our FX inflow. These are crucial measures that have been implemented and should yield positive results.”
Expressing concern about the delay in observing tangible outcomes, Dr. Yusuf remarked, “The timeline for these measures to translate into concrete results remains uncertain. However, the impact of clearing some FX backlog and its influence on the market, as evidenced by its effect on the naira, is noteworthy.”
Furthermore, Dr. Yusuf highlighted the significant impact of foreign exchange on food inflation and emphasized the interconnectedness of currency rates and inflation. He emphasized his belief that stabilizing the currency rate could enable Nigeria to effectively manage inflation rates.
Word of Expert
“The CBN needs to proactively stabilize the currency rates to enable Nigeria to effectively control inflation,” stated Dr. Yusuf.
It’s evident that implementing these interventions will be critical for Nigeria’s economic stability in the near future.
