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By Omodele Adigun
As the end users continue to grapple with acute shortage of foreign exchange (forex), the recently nominated governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, has been tasked with a Heculean task of reworking a full floation of the local currency with a view to attracting forex investors.
According to the lead partner, Mascot Consulting Limited, Marcel Okeke, Nigerians are facing acute forex scarcity, which the incoming CBN governor should bend over backwards to mitigate since “the nation can not leave its fotex rate determination to full market forces” said Okeke.
Cardoso was nominated by President Bola Tinubu last Friday as CBN governor subject to his confirmation by the National Assembly.
Responding to Daily Sun questions on agenda he would like Cardoso to implement, Okeke said Cardoso should do much to ensure that Monetary policy, should as much as possible. align with fiscal policy, saying that “Nigeria, as an import-dependent economy, he should rework the full floatation of the Naira; the forex rate should be managed somehow. Nigeria has serious forex supply challenge, and we are an import-dependent economy, so, we can’t leave our forex rate determination to full market forces.
A floating exchange rate, according to Investopedia, is one that is determined by supply and demand in the open market. A floating exchange rate doesn’t mean countries don’t try to intervene and manipulate their currency’s price, since governments and central banks regularly attempt to keep their currency price favorable for international trade.
Okeke added:”Cardoso should do much to encourage non-oil exports, and repatriation of the proceeds.He should fully carry along bank CEOs and other critical stakeholders in running the CBN. Monetary policy should as much as possible align with fiscal policy.
The CBN under Cardoso should not dabble into too many developmental issues like it did under the former regime.
Cardoso must enthrone integrity, accountability and transparency in all dealings of the CBN under his watch. He should not be seen to be pandering to the whims and fancies of Aso Rock cabals or any other exogenous interest, etc.”
