CIBN: No Govt Can Thrive Adopting Free-floating Exchange Rate

Gilbert Ekugbe

The Lagos State Chapter of the Chartered Institute of Bankers of Nigeria (CIBN), has stressed that no government in the world practices a free-floating exchange model to achieve a stable currency regime.

Speaking at a press conference to herald its 2023 Lagos Bankers Nite with the theme: “Exchange Rate Unification: Local implications for Households, Organisations and the Country,” scheduled to hold on August, 18, 2023, the Branch Chairman, CIBN Lagos State Branch, Mr. Adeyemo Adeoye, said rather than allow free-floating of the naira for the currency to be left entirely to the forces of demand and supply, adopting a managed float system would be desirable.

He expressed concern that since the unification of the forex rates, the gap between the official and parallel market rates has risen to over N200.

“In other climes, they reduce the supply of currency in the nation, by increasing the reserve ratio of banks. Naturally, you will see the impact on the value of the currency, but we have a peculiar economy here.

“The gap between the parallel market and the official market, the average is about five per cent in other developed economies,” but unlike in Nigeria, he stressed that the gap is so wide.

He, however, urged the Bola Tinubu -led administration to look inward by prioritising investment to boost the nation’s productive sectors.

Speaking on the Bankers ‘ Nite, he said the annual event has over the years, been an avenue of social gathering for high profile bankers in Lagos state, financial industry leaders, key stakeholders in the Nigerian economy, captains of industries and topmost opinion leaders in the society.

“It is an annual event where major financial policies are reviewed and new focus articulated. With well over 500 high profile banking/financial practitioners and other institutions in attendance, the 2023 Lagos Bankers’ Nite provides an ample avenue for effective networking and a platform for collating and aggregating ideas that could form key inputs that can help the government navigate the prevailing exchange rate management process,” he said.

nt to encourage you to give this event maximum publicity and mentions, so that more Nigerians can benefit from this important event, in view of the current economic situation,” he urged.