The Centre for the Promotion of Private Enterprise, CPPE, said the unification of foreign exchange rate is commendable.
DAILY POST reports that the Central Bank of Nigeria reportedly directed Deposit Money Banks to remove the rate cap on the naira at the Investors 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.
Speaking on the development, the Director of CPPE, Muda Yusuf, in a statement on Wednesday said that the liberalization of the foreign exchange market would unlock huge potential for investment, jobs and capital flows.
He noted that investors’ confidence would be positively impacted.
“The Centre for the Promotion of Private Enterprise [CPPE] welcomes the bold step taken by the Tinubu administration towards the unification of the naira exchange rate. The liberalization of the foreign exchange market would unlock huge potential for investment, jobs and capital flows. Investors’ confidence would be positively impacted.
“Meanwhile, it should be clarified that this is not a devaluation policy, but a pricing mechanism that reflects the demand and supply fundamentals in the foreign exchange market.
“It is a framework which allows for flexible rate adjustments as and when necessary. It is a model that is predictable, equitable, transparent and sustainable. It is a policy regime that would reduce uncertainty and inspire the confidence of investors. It would minimize discretion and arbitrage in the foreign exchange allocation mechanism.
“Rate unification does not imply that rates will be exactly the same in all segments of the market,” he stated.
Credit:dailypost.ng
