Peter Obi, presidential candidate of the Labour Party (LP),
says if elected president in 2023, his administration would ensure there is
only one foreign exchange (FX) market in Nigeria.
Nigeria currently operates a dual FX market.
While the investors and exporters (I&E) window is
adopted at the official foreign exchange rate market, there is a parallel
section of the market, known as the black market.
At the official market, the naira trades N433 to $1 and N740
to $1 at the parallel market.
However, many believe the parallel market is a reflection of
the true value of the national currency as it serves many Nigerians.
Speaking on the prospects of transformative governance on
Wednesday in Harvard University, America, Obi said the current exchange rate
regime deters investors who are worried about currency risks.
He also said that his administration will eliminate restrictions
around foreign exchange policy.
“As part of our
monetary policy, we will seek to re-establish the independence of the CBN; and
commit to a credible and transparent plan to normalise the exchange rate and
bring inflation to single digits,” Obi said.
“We will remove import and forex restrictions and insist on
a single forex market. The current system penalises exporters who bring in
forex by forcing them to sell at a rate that they are unable to source for when
they need to purchase forex.
“This multiple exchange rate regime encourages capital
flight and deters investment, which has further worsened Nigeria’s forex
situation.”
Click to signup for FREE news updates, latest information and hottest gists everydayWe will remove import and forex restrictions and insist on a single forex market. The current system penalizes exporters who bring in forex by forcing them to sell at a rate that they are unable to source for forex when they need to purchase forex.
— Peter Obi (@PeterObi) October 6, 2022
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com