Stakeholders charge government on good policies
Stakeholders have advised the government to make good policies, communicate them very well and stick to them in order to tackle the perennial foreign exchange challenges in the country.
They gave the advice at the 6th Business Series of a Lagos law firm, Detail Commercial Solicitors (DCS) in Lagos with the theme: “Nigeria’s Foreign Exchange and Financial Markets – Current Issues”.
In his keynote presentation, the Chief Executive Officer of Financial Derivatives Company, Mr. Bismarck Rewane charged the government to manage its expectation very well in its bid to tackle the foreign exchange challenges. “Interest rates are targeted to reduce consumption and to attract foreign investment. But we have to manage our expectations very well,” he stated. He noted that governments action and statements would raise concern among investors concerning market values, adding that people are no longer worried about the exchange rates , but the flip-flop policies of government.
On his part, the Chief Executive Officer of Dunn Lorren Merrifield, Mr. Sonnie Ayere said if we manage our production level and keep oil to 2.5 million barrel per day, there will be significant improvement in the economy. “Why can’t we produce? We are still telling the story of lack of infrastructure. You cannot develop an economy if you don’t have a long term mind. There is this notion that we can open up our bond market to make it attractive to foreign investors, but a country serious about development should focus on production,”he declared.
The moderator and lead partner, DCS, Mr. Ayuli Jemide in his own perspective noted that the forex challenges hinges on the demand and supply chain. He said: “A lot of these are demand and supply issue and we need to increase the supply side. I think that anything that can be done to increase the supply side would help us with the foreign exchange problems. The domicilary account for example, should have an attractive interest rate. People should be allowed to pay cash into their domiciliary account.”
He noted further that a lot of the problems are connected to the volume of cash that is stuck in the country that cannot make its way into the banks, which the people are even afraid to sell. “That is the reality and we have to face it,” he said, warning that if they do the right things, take the right decisions and actions, we will slowly get back to where we are coming from, but if not, your guess is as good as mine.
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