Experts Call for Measures to Support Naira Stability

Some financial market experts have advised the federal government to take measures to ensure that the value of the naira against the dollar is preserved.

They suggested that more items should be added to the Central Bank of Nigeria’s list of items not allowed to source forex from the regulator’s windows.

This, according to them, would help cut down demand for dollars.

According to a forex expert, Jamiu Hamisu ‘‘In 2016, the naira began depreciating against the Dollar following global economic down-turn. The naira went as low as N520 to $1 and this was when Vice President Yemi Osinbajo became acting President.”

A foreign exchange trader, Patrick Oga, said the major instruments to ensure naira stability is the oil price and reserves.

He added: “The best the CBN can do is to continue to hold the naira. The only place we can see naira depreciation is at the parallel market and the BDC, so what they will continue to do is to put them under control.”

Also, a financial analyst, Fred Balogun said: “Once all of this is over, they will commence selling to them to moderate the volatility in that market so what they will continue to do is to use same foreign exchange management policies and add some other things to the exclusion list. So what they will continue to do is to use forex demand management policy while they try to whip the BDC under control. The case for further naira re-pricing is strong,” he added.

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