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FX Crisis: Nigeria should explore other alternative currencies for imports — Expert

A breather for banks and domiciliary account holders

Financial expert and head of investment and research at Meristem Securities Limited, Praise Ihensekhien, has advised the federal government to adopt other currencies for import-related transactions to reduce Dollar dependence and preserve the stability of the Naira in the forex market.

Ihensekhien shared this insight during the Economy Outlook webinar hosted by Nairametrics on Saturday.

According to her, if such policy is implemented, the need for the greenback will significantly diminish, providing the Naira with some respite in the forex market.

While lauding the CBN’s efforts to stabilize the Naira through numerous policies, Ihensekhien pointed out that there is a need for more action, particularly in boosting the supply.

She noted CBN still requires substantial Dollar inflow into the foreign exchange market.

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CBN to explore multilateral lending with other Central Banks

In addition, the financial expert said the CBN can also explore multilateral lending in terms of concessionary facilities that can be extended over a long period of time.

According to her, these loans will significantly result in inflow of Dollars coming into the country.

Ihensekhien said, for instance, that an inflow of around $10 billion into Nigeria, accompanied by a long-term agreement, would be extremely beneficial.

What you should know

In its efforts to achieve price stability in the foreign exchange market, the Central Bank of Nigeria has implemented various macroeconomic measures recently to tackle the country’s foreign exchange crisis.

Under the leadership of Yemi Cardoso, the CBN has rolled out nothing less that fifty circular targeted at reforming the foreign exchange market and ensuring currency stability in the country.

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