CIBN canvases support for CBN on forex unification policy
As part of its commitment towards the growth of the nation’s distressed economy through monetary policy formulation, the Chartered Institute of Bankers of Nigeria (CIBN) has not only declared its support for the forex unification by the Central Bank of Nigeria (CBN), but also calling on Nigerians and other stakeholders to welcome the policy as it is already yielding dividends.
Disclosing this at the 2023 Lagos Bankers’ Nite, with the theme: Exchange Rate Unification: Global Implications for households, organisations and the country, the President of the institute, Ken Opara, who is also chairman of council, noted that the policy was a move in the right direction.
Opara debunked information making round that the institute is not in support of the foreign exchange rate. Commending the apex bank reforms, Opara noted that the efforts of CBN in the area of the unification of the exchange rates and other measures basically taken to ensure the true discovery of the naira, were yielding dividend.
“The efforts of the CBN is yielding dividend, we can see that the rate between the naira and the dollar is already coming down, which means it’s well thought of. It’s a good initiative. It could be a pain for now, at the end of the day it’s a market-driven one.
As a banking community and as consumers, we have always advocated for a free market, that allows the interplay of supply and demand.”
He stressed that the Nigeria banking industry is solid, stable and efficient, urging Nigerians to cherish what they have.
According to him, “The CIBN totally supports the reforms as it relates to the unification of the exchange rate and other measures basically taken to ensure the true discoveries of the naira to ensure that foreign investors come. In a market driven economy people look at it transparently and take decisions.
“We will continue to make contributions and suggestions as relates to what we need to do to support the country as the conscience of the industry. We played this role well when the country was faced with challenges and we will continue because we believe that our banking industry is solid, stable and efficient.”
On the payment system, he noted that Nigeria has the best all over the world. “That is the system where you can consummate transactions on an online real time business. So, we should cherish what we have.”
In his lecture, the guest speaker, Dr. Biodun Adedipe, founder and Chief Consultant, B. Associates Limited, advised that to boost the economy, more attention should be given to strengthening the domestic manufacturing, export and also anchor the economy around either a sector or an activity.
He cited countries like Indonesia, Dubai, Germany, Russia and China and so many others, that anchored their economy around a particular sector or product or activity and are thriving.
“So when you do that it means all your effort in terms of investment in infrastructure, incentives of all manners will be anchored on that activity or sector.
So that is when you deepen activities up locally, you attract investors or visitors from other countries of the world and then they come here they spend their money and buy what you produce.”
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On the major sectors that Nigeria can deepen activities in, Adedipe listed real estate and agriculture, among others.
He noted that the country’s ranking in terms of GDP has dropped because the naira has been losing value.
