The Nigerian naira has recovered, climbing to N730/$ after hitting 900/$ on the black market five days ago.
The value of the naira has improved since the Central Bank of Nigeria, or CBN announced the start date for the redesign of the currency.
Although the CBN reports that the official Naira to Dollar exchange rate is N441.13, Daily Post has learned that the Naira depreciated against the dollar on the black market soon after CBN Governor Godwin Emefiele announced the redesign of the Naira on October 26.
Financial Inclusion/Wealth Management specialist Mr Idakolo Gbolade discussed the issue in a Friday interview with Obasanjonews24 and suggested that the CBN provide additional dollars to the system to support the recent Naira surge.
He stated that, so long as the source is reliable, the government should implement a transparency policy to promote sizable cash deposits without harassment.
“I embrace this new development. To accomplish the sobriety shown thus far, the Economic and Financial Crime Commission, or EFCC, worked in tandem with other law enforcement agencies to raid currency speculators and Bureau De Change, or BDC, operators conducting these scams.
“I think it will assist a lot if the Central Bank of Nigeria, CBN, can provide additional money to the system.
Additionally, we must see to it that individuals implicated in these currency manipulation schemes receive a just punishment.
“The CBN can also pursue a policy of establishing transparency in the cash deposits as a result of the redesign of the Naira by making sure that those who deposited large sums into accounts are not unfairly harassed if the source of the funds is established to be legitimate or if they are simply those who have a habit of hoarding Naira.
According to him, the steps will persuade hoarders to abandon their efforts to exchange Naira for dollars.
To maintain the Naira’s gains versus the Dollar, according to Godwin Oyedokun, a professor of management and accounting at the City University of Ibadan, the government must make it difficult to spend money.
He emphasized that the economic shock that accompanied the CBN’s announcement on the redesign of the naira would only last a short time.
He said that the CBN should truly and transparently carry out the necessary economic growth measures in Nigeria.
I’ve stated it before, but the shock caused by the Central Bank of Nigeria’s recent move to redesign the naira will only lead to momentary stress before things return to normal.
“The CBN should not cross over into some people’s stupidity.
I implore the apex bank to be genuine in how it applies its policies.
“However, by extending the date by two weeks or more, they may wish to evaluate certain follow-up procedures.
“The government must make it challenging for consumers to make purchases. To shop in a UK shopping mall, you just need a credit card. This justification is why the government has decided to stop funding the printing of paper money. This would be made feasible by the development of financial inclusion, he asserted.
The government conducted BDC operator raids last week to clean up the foreign exchange market.
