‘CBN’s Forex Intervention ‘ll Revive Economy’

A financial expert and the Principal Partner of AG Fadairo & Co., Mr. Abdul-Ganiyu Dairo, has described the intervention of the Central bank of Nigeria (CBN) in the interbank forex as a step that would stabilise prices and revive the nation’s economic growth.  Dairo, who said this in Lagos recently, noted that the CBN’s intervention policy would enable the apex bank achieve its objectives of boosting liquidity in the forex exchange market, in addition to reducing the gap between the official and parallel markets’ exchange rates of the naira. He, however, noted that for the success of the CBN’s intervention to be felt across board, the CBN must constantly monitor, charge and review the returns of the sales of foreign currency expectedly made by the banks and the Bureau De Change (BDC) operators in order to ensure that they do not sabotage the current arrangement that had given breather to the naira and that the set terms and conditions are met. The Chartered accountant further stressed that as the apex market had repeatedly explained that it allowed for flexibility to come into play, the market was not expected to be fixed, adding that the market would move based on trend and as a sort of floating market.

Dairo added that the improved implementation of the CBN’s foreign exchange policy had greatly influenced the naira’s recent appreciation, urging that the CBN must sustain its forex intervention until currency convergence was fully achieved.