The Central Bank of Nigeria, last week announced a policy adjustment that will now allow beneficiaries of Diaspora remittances receive their inflows in dollars.
Analysts have hailed the move, saying this could increase the flow of dollar liquidity to the parallel market thereby increasing the value of Naira and reduce the accretion to the foreign reserves which is currently around $35.4bn.
Tope Fasua an economist and a former presidential candidate commended the Central Bank, but claims the only way the value of Naira will strengthen in the long run, is an increase in economic activities and productivity that generate more foreign exchange for the economy.
He further said Nigeria needs to start working on its economic complexity which is the knowledge quotient of the goods and service of the country. This he said takes a lot of time but can be achieved by having a clear vision, setting goals and investing in people, among other things.
Fasua commended Nigeria’s apex bank for restricting some companies from getting access to foreign exchange in the country as this will force the country to produce more.
Since the first quarter of the year, Nigeria has faced an exchange rate crisis triggered by a drop in oil prices due to the Covid-19 pandemic. As at Friday, December 4, the Naira strengthened to 474 per dollar in the parallel market, according to abokifx.com.
Lillian Jijingi
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