Business Nigeria's MPC Members Condemn CBN Over Naira Reform Policies

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Two members of Nigeria’s Monetary Policy Committee have criticized CBN's efforts to prop up the naira by restricting access to dollars.

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Others said the regulator should allow a more flexible exchange rate.

Chibuike Uche questioned the legality of the Central Bank of Nigeria’s June decision to stop importers of around 40 items, including rice, furniture and toothpicks, accessing official foreign-exchange markets.

“The denial of foreign exchange to businesses that engage in legitimate economic activities is confounding,” Uche, a professor of banking and finance at the University of Nigeria, said in his personal statement. “I am not convinced the CBN has the legal powers to deny the allocation of foreign exchange to legitimate businesses.”

Doyin Salami said the measure would slow economic growth and that foreign investors were confused by the central bank’s attempts to defend the naira since March.

However Deputy Governors Sarah Alade and Joseph Nnanna said the central bank needed to inject more liquidity into the foreign exchange market and allow the currency to trade more freely.


Bloomberg
 
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