Suggesting a course of action, financial analyst and educator, Kalu Aja, has recommended that the Nigerian government capitalize on the opportunity presented by the Central Bank of Nigeria, CBN.
Earlier, it was reported by NewsNow that the Naira saw a rise in value against the US dollar, with an exchange rate of N1,290 and N1,382.95 per USD in both the parallel and official foreign exchange markets, alongside the Central Bank of Nigeria’s increase in interest rates.
The financial expert pointed out that the Naira’s strengthened position in the foreign exchange market could be attributed to the Central Bank of Nigeria’s intervention in providing foreign exchange to Bureau De Change operators.
According to Aja, this positive development may not be sustainable in the long run without substantial foreign reserves, as Nigeria’s forex crisis stems from declining exports, particularly in the oil sector.
Responding to criticism directed at him, Aja stated in a social media post that providing subsidies on foreign exchange is a lawful practice employed by central banks globally, which could yield benefits if executed effectively.
He further urged the Nigerian government to use the opportunity created by the CBN to address issues related to oil theft.
In his words, “I have been clear,
“Providing subsidies on foreign exchange is legal, a common practice among central banks, and has the potential to be advantageous if managed correctly.
“I am emphasizing that there is still work to be done; Nigeria must capitalize on the time provided by the CBN to combat oil theft.
“Therefore, I find it perplexing to be faced with criticism and hostility; your verbal attacks will not alter the economic realities that govern our situation.”