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Economist blames corruption, inefficiency for unending Naira depreciation

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Economist blames corruption, inefficiency for unending Naira depreciation

By Kadiri Abdulrahman

An economist, Mr Tope Fasua, blamed corruption, inefficiency, low productivity and lack of patriotism, for the endless depreciation of the Naira.

“What happens to the Naira is that we all have to pay for the sins of the past; sins of corruption, inefficiency, low productivity. The point is, Nigerians are not patriots, ”said Fasua, CEO of Global Analytics Consulting Limited.

In an interview with Nigeria‘s news agency on Wednesday, in Abuja, he said it was worrying that despite measures taken by the Central Bank of Nigeria (CBN) to strengthen the naira, the currency continued to depreciate.

Regarding the recent depreciation of the Naira, Fasua said, “This one in particular is a speculative attack triggered by the policy of the CBN to stop the sale of currencies at around 10,000 BDC. Everyone here has a BDC license, some have multiple licenses.

“That in itself is a world record number compared to places like the UK where they have 145 BDCs, the UAE 130 and New York 40.

“We should support CBN to stop the idea of ​​people carrying dollars around as if it were a mark of prosperity,” he said.

The economist said the CBN has the right to regulate the sale of currencies, adding that the umbrella bank should be commended for playing this role effectively.

He called for an adequate supply of foreign currency for official and legal transactions to make the forex black market irrelevant.

“If CBN is able to provide currency for official and legal transactions, we shouldn’t worry about what is happening on the black market.

“We have to be careful of the premium we give to what is happening on the black market. We should also encourage the CBN to expand the transactions for which it can grant eligibility.

“The more import transactions and visible trade transactions that the CBN can encounter, the better for the Naira,” he said.

In addition, a financial expert, Mr. Okechukwu Unegbu, said the continued depreciation of the Naira implied that the measures taken so far by the CBN to strengthen the currency had not worked.

Unegbu, former chairman of the Chattered Institute of Bankers of Nigeria (CIBN), suggested that Chinese importers should be allowed to exchange naira for yuan, the Chinese currency.

He said the Naira had been mistreated and underestimated over time, adding that the CBN needed to initiate strong policies to strengthen it.

“One of the things that would have helped is to exchange the Naira for the Chinese Yuan for imports from China. We don’t need to pay for goods from China in dollars.

“With N500 you can get a square meal in Nigeria, but with a dollar you can’t get anything in America. This is an indication that the Naira has been abused and underestimated.

“The CBN will have to come up with innovative policies to strengthen the Naira,” he said.

Source: NAN

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