Towards ensuring foreign exchange stability in Nigeria
The CBN most recently released a policy guideline aimed at enhancing transparent management of diaspora remittances .
This is one of the measures by the CBN to checkmate the free fall in the value of the naira in the forex market .
Beyond this, if truly we are sincere as a people and desire to transparently manage and ensure forex stability in Nigeria , the following measures must be put in place urgently.
1. Stop fx allocations to BDCs and give them a one year window to covert to specialized micro lending institutions within their current capital threshold/band.
It is insane to register over 5,200 BDCs and expect not to have the kind of fx games that they play in Nigeria. BDCs do not add any tangible values to the growth of our real sector economy.
2. The FAAC allocations to the States and LGAs should be made to them in dollar into their dedicated domicilary accounts with their preferred Deposit money banks .
The pressures we face in defending the naira are mainly driven by the corrupt antics of public sector officials at Abuja and 36 states, who seek for routes to exchange the naira received from FAAC to dollar through the BDCs and other players in the PARALLEL market
3. We must enshrine guidelines that penalise dollar cash transactions. 50% tariff should be placed/ charged on any dollar cash withdrawal in excess of US$500 at any point in time. That simply means to withdraw $1000 cash , you will pay $500 penal charge . People must be encouraged to transact cashlessly through their dom accounts in the system .
If we put these measures in place plus the new guideline that allows diaspora Nigerians to receive their remitted forex in the same currency they transmitted it, you will see the naira stabilise over time .
We know what to do, but those, who rule over us may not execute this honest and altruistic suggestions because it will take the wind off their sailing vessel of corruption and wickedness..
God help us
Dr Nnaemeka Onyeka Obiaraeri, FICA
