Flexible exchange rate: Experts decry non-release of guidelines

Some capital market operators on Saturday decried the non-release of the flexible foreign exchange rate guidelines by the Central Bank of Nigeria (CBN), two weeks after the pronouncement was made public.

They told the News Agency of Nigeria (NAN) in Lagos that the delay in releasing the guidelines was heightening uncertainties in the foreign exchange market.

Mr Ambrose Omorodion, the Chief Operating Officer, InvestData Ltd, said that the apex bank should hasten the process to reduce the uncertainties in the forex market and the economy in general.

Omorodion stated that a flexible exchange rate policy would certainly increase foreign investor participation in the Nigerian stock market.
He added that the delay was affecting economic growth and development, with prospective investors adopting a “wait and see attitude’’.

Mr Adebayo Adeleke, National Secretary, Independent Shareholders Association of Nigeria (ISAN), said that a flexible exchange rate would ease the business and investment climate in the country.

Adeleke, who explained that a flexible exchange rate was a backdoor devaluation of the naira, said that the guidelines should be released as soon as possible, to aid investment decisions.

He predicted that there would be a slight upward-swing in the market this month, as people would cautiously return to it.
Mr Boniface Okezie, President, Progressive Shareholders Association of Nigeria (PSAN), said that the apex bank should ensure a friendly forex regime to save the capital market and the economy in general.

Okezie said that many industries were struggling because of lack of forex to import the much-needed raw materials.
According to him, the CBN should devise another means that would ensure the availability of forex for genuine businessmen and foreign investors.

NAN reports that the Monetary Policy Committee (MPC) of the apex bank on May 24, asked the CBN to work on a flexible exchange rate system and ensure a speedy release of the framework.