The Managing Director of UAC Group Larry Ettah, has delivered harsh words at the CBN Governor for the delay in revealing details of the flexible exchange rate policy.
According to an article in Bloomberg the CEO had said that the central bank’s delays in announcing details of a more flexible foreign-exchange system are holding back business decisions because of confusion over future costs.
“They should have done it yesterday, rather than tomorrow………We are hopeful that if flexibility is introduced, it will help to bring clarity in terms of costing. People don’t like uncertainty……..If you look at the cost of raising those funds and also the amount you’ll end up raising, it’s simply cost ineffective,” Ettah said.
About 10 days ago the Central Bank Governor, Godwin Emefiele had at the end of the Monetary Policy Committee meeting informed the world that they were going to introduce a flexible exchange rate policy and that “details of operations of the market would be released by the central bank at the appropriate time”.
It’s almost two weeks since that announcement was made and the Central Bank is yet to release details. This has ensured a spike in speculation leading the Naira to depreciate to as high as N376 to the dollar.