He stated that the unification of the naira exchange rate would unlock the huge potential for investment, jobs, and capital flows.
The PUNCH had earlier reported that the Central Bank of Nigeria reportedly directed Deposit Money Banks to remove the rate cap on the naira at the Investor’s and Exporters’ (I&E) Window of the foreign exchange market, to allow for a free float of the national currency against the dollar and other global currencies.
The development means buyers and sellers of foreign currency in the official FX market can now quote rates they find comfort in the FX market, as against previous practice where the Central Bank of Nigeria dictated rates.
Reacting in a statement issued on Wednesday, the financial expert said the new framework will allow for flexible rate adjustments making the market predictable, equitable, transparent, and sustainable.
He also added that the policy would reduce uncertainty and inspire the confidence of investors minimising discretion and arbitrage in foreign exchange allocation mechanisms.
The statement read, “The Centre for the Promotion of Private Enterprise welcomes the bold step taken by the Tinubu administration towards the unification of the naira exchange rate.
“A unified exchange rate regime enhances liquidity and reduces uncertainty in the foreign exchange market. It would boost government revenue by a minimum of N4 trillion through additional remittance of exchange rate surplus to the federation account by the CBN and allow the use of naira cards for limited international transactions.
“It would facilitate the mopping up of naira liquidity in the economy in the short to medium term. This would impact positively the inflation outlook.
“The CPPE also expects the new policy to deepen the autonomous foreign exchange market through the liberalisation of inflows from Export Proceeds, Diaspora Remittances, Multinational oil companies, diplomatic missions, etc.,” the statement concluded.
