The Centre for the Promotion of Private Enterprise (CPPE) has issued a pressing call to Olayemi Cardoso, the newly appointed Governor of the Central Bank of Nigeria (CBN), urging immediate action to address the nation’s foreign exchange (forex) crisis.
In a statement released on Sunday, CPPE’s Director, Muda Yusuf, presented a ten-point agenda to Governor Cardoso, emphasising the critical need to restore stability and confidence in the forex market.
This appeal arrives in the wake of the Nigerian Naira’s alarming depreciation against the United States dollar, with the parallel market witnessing a daunting exchange rate of N980 to $1 as of Friday.
Yusuf underscored the significant crisis of confidence afflicting Nigeria’s forex market, indicating the imperative nature of intervention to avert further volatility.
The economic think-tank group further called for a transparent and strategic government intervention to address the ongoing crisis effectively.
CPPE has implored Governor Cardoso to take swift measures to implement policies that foster deeper engagement with stakeholders and enhance the overall efficiency of the financial system.
Moreover, the director urged the new CBN governor to prioritise the recapitalisation of banks and effectively manage ways and means for the government.
Yusuf stated, “Meanwhile, the CBN must ensure strategic and transparent intervention in the forex market to minimise volatility within the reserves’ capacity. In addition to the Investors and Exporters (I&E) window, establishing an autonomous forex trading window within the banking system, free from encumbrances, has become imperative.
“We must act decisively to prevent the diversion of remittances to other jurisdictions or the black market. Denial is not an option at this juncture. Clearing the backlog of forex obligations should be accorded the highest priority to restore confidence among domestic and foreign investors.”
The call from CPPE underscores the urgency and complexity of the forex situation in Nigeria, making it a top priority for Governor Olayemi Cardoso and the Central Bank.