“He Wants To Achieve It”: Experts Speak As Tinubu’s Govt Sets Naira to Dollar Exchange Rate Target
- The administration of President Bola Tinubu has an exchange rate target to achieve in the coming weeks ahead
- Steps taken to achieve the set target include clearing foreign debts to banks
- Experts have reacted to the target and provided insights into how the Tinubu administration achieve it
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The federal government has promised to shore up the value of the naira against the US dollar in the foreign exchange market.
Already, measures have been put in place to achieve a fair exchange rate target in the weeks ahead, Punch reports.
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Legit.ng earlier reported that the Central Bank of Nigeria (CBN) cleared banks' forex forwards backlog, creating a positive sentiment and helping the naira improve in value across all the FX markets.
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Although the gains have reversed in the last few days, the Special Adviser to the President on Economic Matters, Dr Tope Fasua, believed the measure will help the naira achieve N500-N600/$1 in the future.
Speaking at an event in Abuja, he cautioned Nigerians hoarding foreign currencies with the hope that the local currency will continue to fall.
He also warned the government's policies will shock them, according to Vanguard reports.
Fasua words:
“Some people thought the naira will continue to lose value. Of course, we can already see what’s going on and the naira will strengthen even further to may be N500 or N600."
Experts react to N500-N600/$1
Speaking on Fasua's naira projection, NECA's Director-General, Mr Adewale-Smatt Oyerinde, noted that the plan for the government to achieve an N500-N600/$1 in 2024 was very ambitious.
He said the government should fix the problem before setting targets.
He said:
“While we commend the plan, it is instructive to note that this will require a deliberate and focused plan of action to address the shortfall in dollar supply”.
On his part, Olatunde Amolegbe, immediate past President of the Chartered Institute of Stockbrokers, CIS, wondered how the targeted exchange rate would be achieved.
He stated:
“Though I have not seen where they stated this, how they intend to do it is still unclear to me. We certainly do not have enough information that points to how this will happen in the medium term”.
Naira to dollar new exchange closes official and black market rate
Legit.ng recently reported that the Nigerian currency, the naira, rose at both the official and unofficial foreign exchange markets.
The latest exchange rate showed that the gap between the two forex markets is getting closer.
Source: Legit.ng
