Posted by According to Atedo Peterside, founder of Stanbic IBTC and the ANAP Foundation, attempting to hasten the naira’s appreciation against the dollar is futile.
In an interview that aired Thursday on Politics Today on Channels Television, Peterside made this statement.
The naira’s rapid appreciation versus other foreign currencies is not the greatest method, according to the creator, who is a member of the cabinet led by President Bola Tinubu.
The present government, he said, was not to blame for the naira’s decline in value.
His recommendation is that the central bank establish a stable naira exchange rate and slowly increase the reserve funds until they can support the currency for an extended period.
The current administration inherited the currency rate problem and has been attempting to address it, he stated fairly. Do not rush to value the exchange rate; instead, let’s achieve some stability around N1,300 or N1,400.
“Those individuals will sell dollars to the bureau de change for N1,000 or N1,050, then two weeks later they will sell them for N1,400 or N1,500 and they will laugh it off. Why is that even necessary?
The best course of action is to establish a level of stability that they can maintain; for the time being, try to stay within the range of N1,300 to N1,300, which appears to be the natural equilibrium band.
“So, it’s futile to try to value the naira quickly,” he warned.
Oyedokun, a PDP member and board member, leaves the party, and FAAC reports that the federal government, states, and LGs shared N1.208 trillion in April income. Peterside criticized the government for its wasteful spending and asked it to begin doing things properly to restore investor trust.
According to him, the government will not accomplish anything significant if its policy is to do five things right and two things badly.
According to the economist, Tinubu is making progress with his monetary strategy, but the government needs to address its severe budgetary mismanagement.
You may remember that the naira dropped to almost 1,900 to the dollar previously. It was formerly considered the worst-performing currency in the world, but it recovered to a level where it was valued at about 1,100.
But once again, the black market value of the naira has dropped to almost 1,500 to the dollar.