Naira crisis: Release funds to restore confidence in forex market

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A financial expert, Idakolo Gbolade, says the Central Bank of Nigeria should release funds to restore confidence in the country's foreign exchange market

A financial expert, Idakolo Gbolade, says the Central Bank of Nigeria should release funds to restore confidence in the country’s foreign exchange market amid the crisis.The nation’s currency has continued to experience free fall, exchanging at N980/$1 in the parallel market.He stressed that the apex bank should pump funds into the market to clear the forex backlog.

“The major challenge is the uncertainty around forex supply and the lack of assertiveness by the CBN; if the players in the market believe the CBN cannot adequately fund the market, they will seek alternative means, which leads to higher margins between the I&E window and the parallel market. “The CBN needs to boost confidence in the forex market to provide enough forex to service the market. The federal government needs to release funds to enable the backlog of forex obligations to be cleared to create confidence in the market and strengthen the naira against the dollar,” he stated.

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