Ayo Teriba: How to fix Nigeria’s foreign exchange challenges

Ayo Teriba: How to fix Nigeria’s foreign exchange challenges

Friday, May 6, 2016 2:30 pm

An economist, Dr Ayo Teriba on Friday urged the Central Bank of Nigeria (CBN) to set a policy that would stabilise and protect the country’s currency from devaluation, NAN reported today.

In a statement in Lagos, Teriba said if the foreign exchange supply was not solved, the country faced the risk of repeated rounds of devaluation of its currency.

The economist said that the country’s foreign exchange challenges, occasioned by dwindling revenue from crude oil, was responsible for the pressure on CBN from some quarters to devalue the naira.

He advised that the upcoming Monetary Policy Committee (MPC) meeting of the bank should address the issue of foreign exchange.

The expert said that solving the foreign exchange issues would stabilise the naira and liberalise capital inflow into the country.

He said that the foreign exchange shortfall could be supplemented through export earnings, foreign direct investments and Diaspora inflows.

“Unless the MPC comes up with ideas on how government can boost FOREX inflows, there is nothing they can do about the naira,” Teriba said.

He urged the government to stimulate the economy by creating an enabling environment and incentives that would encourage the private sector to explore and drive the key sectors of the economy.

The News Agency of Nigeria reports that the next MPC meeting is scheduled for May 23 and May 24.

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