Minimising Volatility In Forex Market Critical To Ending Naira Fall

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An economist, Muda Yusuf, has called for minimising volatility in the foreign exchange market, saying that it fuels speculation and creates an unpredictable environment.Yusuf was reacting to the fluctuation in the foreign exchange market which has seen the Nigerian currency continue to rise and at the same time fall against the American dollar.

Naira which had earlier fallen to around 1,900 to a dollar later rallied to around 1,100 which saw it recently declared as the best-performing currency in the world.Commenting on that on Channels Televisions Politics Today on Friday, Yusus said, “The issue of volatility in the foreign exchange market is something that we need to take up very seriously.

“Persistent volatility can lead to a loss of confidence and once confidence begins to be eroded, it further fuels speculation, it creates uncertainty, it makes the environment unpredictable and that is not good for investment.” Yusus, who is a former Director General of the Lagos Chamber of Commerce, said the economic reform of the President Bola Tinubu administration is a work in Progress. According to him, the economic team will continue to learn as they progress with the reforms.

He said that the Nigerian foreign exchange market is full of a lot of imperfections and he added that the Central Bank has done well to deal with some of them but that more needs to be done to achieve a more stable exchange rate.Yahaya Bello: Kogi Court Summons EFCC Chair Over Alleged Contempt

 

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