Expert urges CBN to be proactive in FX management

As controversy continues over the country’s foreign exchange management approach, a financial and management consultant, Orji Udemezue, has advised the Central Bank of Nigeria (CBN) to adopt proactive measures.

Udemezue said a reactive approach would continue to cause unnecessary distortion and reduce confidence.

Udemezue was reacting to the confusion created by a report credited to the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, to the effect that Nigeria had adopted a flexible management regime, a claim the CBN Governor, Mr. Godwin Emefiele described as a misrepresentation.

Speaking on achieving sustainable management, the financial expert said the CBN’s action so far is not encouraging.

His words:”Instead of tactically devaluing the naira, it would pay the economy better if the CBN adopted a bold and more strategic approach to unify the FX rates. We also need to drastically and deliberately boost non-oil exports – which is needed badly now to create jobs and ultimately boost FX inflows. Until the CBN embraces a proactive and evidence-based approach to policy making, we are in this mess on a long haul.”